-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, SX2fZswXCX2+LEADXKxCTOjiUSfbF7tHxMFgNY1XLW1LLCI/yte7E6A40aQ9z2Px GeM8Dqs3xyIyV0m/m4keAQ== 0000935069-01-000182.txt : 20010312 0000935069-01-000182.hdr.sgml : 20010312 ACCESSION NUMBER: 0000935069-01-000182 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20001231 FILED AS OF DATE: 20010308 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SCHWAB CHARLES FAMILY OF FUNDS CENTRAL INDEX KEY: 0000857156 STANDARD INDUSTRIAL CLASSIFICATION: [] STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-05954 FILM NUMBER: 1563514 BUSINESS ADDRESS: STREET 1: 101 MONTGOMERY ST CITY: SAN FRANCISCO STATE: CA ZIP: 94104 BUSINESS PHONE: 4156277000 MAIL ADDRESS: STREET 1: 101 MONTGOMERY ST CITY: SAN FRANCISCO STATE: CA ZIP: 94104 N-30D 1 0001.txt SCHWAB MUNICIPAL MONEY MARKET ANNUAL REPORT IMPORTANT NOTICE REGARDING DELIVERY OF SHAREHOLDER DOCUMENTS SCHWAB Municipal Money Funds December 31, 2000 Annual Report enclosed SCHWAB MUNICIPAL MONEY FUND SCHWAB CALIFORNIA MUNICIPAL MONEY FUND SCHWAB NEW YORK MUNICIPAL MONEY FUND SCHWAB NEW JERSEY MUNICIPAL MONEY FUND SCHWAB PENNSYLVANIA MUNICIPAL MONEY FUND SCHWAB FLORIDA MUNICIPAL MONEY FUND This report is not authorized for distribution to prospective investors unless preceded or accomanied by a current prospectus. [GRAPHIC OMITTED] CHARLESSCHWAB IMPORTANT NOTICE REGARDING DELIVERY OF SHAREHOLDER DOCUMENTS The Securities and Exchange Commission (SEC) permits mutual funds to deliver only one copy of shareholder documents, including prospectuses and shareholder reports, to fund investors with multiple accounts at the same residential or post office box address. This practice is commonly called "householding" and is intended to eliminate duplicate mailings of shareholder documents. MAILING OF YOUR SCHWABFUNDS(R) SHAREHOLDER DOCUMENTS MAY BE HOUSEHOLDED INDEFINITELY UNLESS YOU INSTRUCT US OTHERWISE. ADDITIONAL COPIES OF SHAREHOLDER DOCUMENTS All SchwabFunds prospectuses and shareholder reports are available free of charge and may be requested at any time by calling Schwab as indicated below. SchwabFunds prospectuses are also available on our Web site at WWW.SCHWAB.COM/SCHWABFUNDS. If you would prefer that your SchwabFunds mailings not be householded, please contact: SCHWAB SIGNATURE SERVICES(TM) CLIENTS Schwab Signature Services. INVESTMENT MANAGER CLIENTS Schwab at 1-800-515-2157, or your investment manager. ALL OTHER CLIENTS Schwab at 1-800-435-4000. Your instructions that householding not apply to your accounts holding SchwabFunds will be effective within 30 days of receipt by Schwab SCHWAB MUNICIPAL MONEY FUNDS December 31, 2000 Annual Report SCHWAB MUNICIPAL MONEY FUND SCHWAB CALIFORNIA MUNICIPAL MONEY FUND SCHWAB NEW YORK MUNICIPAL MONEY FUND SCHWAB NEW JERSEY MUNICIPAL MONEY FUND SCHWAB PENNSYLVANIA MUNICIPAL MONEY FUND SCHWAB FLORIDA MUNICIPAL MONEY FUND [GRAPHIC OMITTED] CHARLESSCHWAB SCHWAB MUNICIPAL MONEY FUNDS We're pleased to bring you this annual report for the following funds (the funds) for the one-year period ended December 31, 2000: o Schwab Municipal Money Fund o Schwab California Municipal Money Fund o Schwab New York Municipal Money Fund o Schwab New Jersey Municipal Money Fund o Schwab Pennsylvania Municipal Money Fund o Schwab Florida Municipal Money Fund During the reporting period, the funds continued to provide competitive money market returns, combined with stability of capital and liquidity.1 Three of the funds--the Schwab Municipal Money Fund, the Schwab California Municipal Money Fund and the Schwab New York Municipal Money Fund--offer two classes of shares, Sweep Shares and Value Advantage Shares, which are both presented in this report. These two share classes were designed for different purposes, as explained on page 3. Depending on your cash needs and investment profile, either or both classes of the funds may have a place in your investment plan. Please remember that an investment in the funds is neither insured nor guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency and, although the funds seek to preserve the value of your investment at $1 per share, it is possible to lose money by investing in the funds. CONTENTS - --------------------------------------------------- A Message from the Chairman 1 - --------------------------------------------------- What Money Fund Investors Should Know 2 - --------------------------------------------------- Market Overview 5 - --------------------------------------------------- Portfolio Management 10 - --------------------------------------------------- Schwab Municipal Money Fund 11 - --------------------------------------------------- Schwab California Municipal Money Fund 12 - --------------------------------------------------- Schwab New York Municipal Money Fund 13 - --------------------------------------------------- Schwab New Jersey Municipal Money Fund 14 - --------------------------------------------------- Schwab Pennsylvania Municipal Money Fund 15 - --------------------------------------------------- Schwab Florida Municipal Money Fund 16 - --------------------------------------------------- Questions to the Portfolio Management Team 17 - --------------------------------------------------- Glossary of Terms 21 - --------------------------------------------------- Portfolio Highlights 22 - --------------------------------------------------- Financial Statements and Notes 28 - --------------------------------------------------- 1 Income may be subject to the federal alternative minimum tax (AMT) and income from the Schwab Municipal Money Fund may be subject to state and local income taxes. A MESSAGE FROM THE CHAIRMAN [GRAPHIC OMITTED] Dear Shareholder, During the last few years, the benefits of investing have been readily apparent, while the risks have been somewhat less obvious. In recent months, however, investors have been subject to larger swings in the market, even within the span of a single day. Given this divergent environment, the message is clear: Expect volatility, maintain a long-term view and ensure your investment strategy is appropriate for your risk tolerance and time horizon. One way to lessen the impact of volatility on your portfolio is to adequately diversify your investments, both within and across asset sectors, namely stocks, bonds and cash equivalents. Since we launched our first equity fund in 1991, SchwabFunds(R) has become one of the largest and fastest- growing mutual fund companies in the United States. With more than $125 billion net assets under management and nearly six million accounts, we now manage 44 mutual funds, covering nearly every asset class. Our broad range of funds can help form the foundation of a diversified investment plan. SchwabFunds' asset allocation funds can even provide diversification within a single fund. As a leader in online brokerage, we recognize the value of the web as a means of communicating timely, relevant information to investors. Regular updates on all the SchwabFunds, including performance data, are available on our Web site at WWW.SCHWAB.COM/SCHWABFUNDS. We encourage you to take advantage of this valuable resource. Thank you for your investment in SchwabFunds. For its part, SchwabFunds will do everything we can to warrant the trust you have placed in us. Sincerely, /s/ CHARLES SCHWAB Charles Schwab December 31, 2000 1 WHAT MONEY FUND INVESTORS SHOULD KNOW WHY ASSET ALLOCATION MATTERS As most investors know, one of the most compelling reasons to invest in a mutual fund is diversification. By allocating your assets across many different securities, a diversified fund helps to reduce the risk that you might otherwise encounter by owning just a few stocks or bonds. Don't forget, however, that diversification across your portfolio is just as important as diversification within one of the mutual funds you own. As you probably know, stocks historically have offered much higher returns over the long term than other asset classes, such as bonds or cash, but those returns have come at the price of higher volatility. To help mitigate some of that risk, many investors often include at least some bonds, money market securities or funds, and cash in their portfolio. CHOOSING A MONEY MARKET FUND Some investors may believe that there is no good reason to shop around for a money market fund. This may be partially due to the fact that 20 years ago, practically the only feature that differentiated one money market fund from another was whether it allowed investors to write checks against it. Today, investors can choose from a wide variety of options and features offered by the more than 1,000 money market funds currently available.1 You can help assure thatt you've chosen the right money market fund by considering the role it will play in your investment portfolio. Here are some factors to consider when making or reviewing your money market fund choice. EXPENSES: Because expenses are one of the key determining factors in a money market fund's performance, investors are wise to seek out funds with low operating expense ratios. Also, beware of those that have temporary expense waivers that waive expenses to zero because expenses can't stay at zero forever, and fees will undoubtedly eventually rise. Also consider 12b-1 fees, which some money market funds include in their expense ratios to pay for marketing costs. These fees can reduce yield, in some cases by a full percentage point. When comparing money market fund choices, you may want to avoid funds that carry these unnecessary fees. YIELDS: Look for competitive yields, but don't stop there. Many institutions advertise their money market funds on the basis of yield.2 Although getting a competitive yield is important, other features, such as convenient access to your investment, also are important considerations. Furthermore, stretching for an additional 10 or 20 basis points in yield (0.10% to 0.20%) may not be worth the time, effort or added risk. For example, a $10,000 investment in a money fund that yields 0.10% more amounts to only an additional $10 over a one-year period. SWEEP FEATURES: If you're looking for a convenient way to link your money market fund with your brokerage account, consider an account that has a "sweep" feature. Accounts with this feature automatically "sweep" uninvested cash into the fund you select as your primary money fund. The upshot: It keeps cash working. In addition, shares of your fund will be redeemed automatically to cover investment purchases and other debits in your account. This convenience may be well worth the small additional cost. LARGER CASH BALANCES: You may earn higher yields for larger cash balances. If you don't need frequent access to the money in your money market fund, 1 An investment in a money market fund is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency and, although money funds seek to preserve the value of your investment at $1 per share, it is possible to lose money by investing in a money fund. 2 Yields may vary. 2 consider one designed to pay higher yields for larger cash balances. These funds typically have higher minimum balance requirements and transaction policies designed to minimize fund operating expenses, and may be able to post higher yields, all else being equal. TAXES: Don't forget to consider your tax situation. If you're in a high tax bracket, investing in tax-free or municipal money market funds may help take a bite out of your tax bill.3 And, if you live in a state with a high personal state income tax, you may be best served by choosing a state-specific tax-free fund that provides income free from federal, state and, in some cases, local income taxes.3 SCHWAB MONEY FUNDS Schwab offers two types of money funds--Sweep Investments(R) and Value Advantage Investments(R). Both include funds that offer taxable and tax-free income. Depending on the role that cash and cash-equivalent investments play in your investment plan, either or both may have a place in your investment portfolio. SWEEP INVESTMENTS are designed for your cash balances requiring frequent access. These funds can be linked to your Schwab account to serve as a primary sweep money fund. That means uninvested cash in your Schwab brokerage account is automatically swept in and out of the fund, based on transactions in your account and the terms and conditions of your account agreement. VALUE ADVANTAGE INVESTMENTS are designed for your larger cash balances that don't require frequent access. Value Advantage Investments have higher minimum initial and ongoing balance requirements than Sweep Investments. These requirements, along with policies designed to discourage frequent transactions, can help minimize fund expenses--which in turn can mean higher returns for investors. Unlike Sweep Investments, Value Advantage Investments cannot be linked to your Schwab account to serve as your primary sweep fund. Schwab offers a variety of money funds. If you are selecting from among them, you should consider your attitude toward risk and return, as well as your income tax bracket. SCHWAB TAXABLE MONEY FUNDS SCHWAB MONEY MARKET FUND A high-quality money fund for investors interested in the potential for high money market yields. SCHWAB VALUE ADVANTAGE MONEY FUND(R) A high-quality money fund designed for larger cash balances that don't require frequent access. SCHWAB GOVERNMENT MONEY FUND Designed for investors who want current money market yields along with the added margin of safety provided by a portfolio of U.S. government securities and repurchase agreements. SCHWAB U.S. TREASURY MONEY FUND Of all the money funds offered by Schwab, this one seeks to provide the highest degree of safety. The fund invests exclusively in U.S. Treasury securities and other investments that are backed by the full faith and credit of the U.S. government. What's more, income from the fund is generally free from state and local income taxes. 3 This may not be true for investors subject to the federal alternative minimum tax (AMT); consult your tax advisor. 3 WHAT MONEY FUND INVESTORS SHOULD KNOW (continued) SCHWAB MUNICIPAL MONEY FUNDS1 SCHWAB MUNICIPAL MONEY FUND A high-quality municipal money fund that seeks to provide income that is free from federal income tax. SCHWAB STATE-SPECIFIC MUNICIPAL MONEY FUNDS Each of these funds is designed for taxpayers of a particular state and seeks to provide income that is exempt from federal, state and, in some cases, local income taxes. The Schwab Florida Municipal Money Fund also seeks to have its shares exempt from the Florida Intangible Tax. o Schwab California Municipal Money Fund o Schwab New York Municipal Money Fund o Schwab New Jersey Municipal Money Fund o Schwab Pennsylvania Municipal Money Fund o Schwab Florida Municipal Money Fund The table below presents the various money fund choices available at Schwab. VALUE ADVANTAGE TAXABLE MONEY FUNDS SWEEP INVESTMENTS(R) INVESTMENTS(R) - -------------------------------------------------------------- Schwab Money Market Fund o - -------------------------------------------------------------- Schwab Value Advantage Money Fund(R)--Investor Shares o - -------------------------------------------------------------- Schwab Government Money Fund o - -------------------------------------------------------------- Schwab U.S. Treasury Money Fund o - -------------------------------------------------------------- MUNICIPAL MONEY FUNDS - -------------------------------------------------------------- Schwab Municipal Money Fund o o - -------------------------------------------------------------- Schwab California Municipal Money Fund o o - -------------------------------------------------------------- Schwab New York Municipal Money Fund o o - -------------------------------------------------------------- Schwab New Jersey Municipal Money Fund o - -------------------------------------------------------------- Schwab Pennsylvania Municipal Money Fund o - -------------------------------------------------------------- Schwab Florida Municipal Money Fund o - -------------------------------------------------------------- If you would like more information on any of these funds, please call 800-435-4000 and request a prospectus. The prospectus contains more information on fund fees and expenses as well as risks. Please read it carefully before investing. 1 Income may be subject to the federal alternative minimum tax (AMT), and income from the Schwab Municipal Money Fund may be subject to state and local income taxes. 4 MARKET OVERVIEW GROWTH PERIOD IS THE LONGEST IN U.S. HISTORY. The year 2000 marked the tenth year of continuing U.S. economic expansion--the longest period of continuous growth in U.S. history. The main forces behind the expansion have been high levels of consumer spending--fueled by increases in personal income, personal wealth and consumer confidence--as well as a healthy housing sector and strong investment in capital improvements by businesses. However, as the year ended, it appeared that the current ten-year cycle may have run its course. In an effort to slow the economy while reducing inflationary pressures, the Federal Reserve Bank (the Fed) raised short-term interest rates from 5.5% to 6.5% in three separate actions during the first six months of 2000. These rate hikes proved to be effective as Q3 Gross Domestic Product (GDP) fell to 2.2%, its lowest level since Q3 1996, and well below the 5.6% rate of Q2 2000. Consumer and business spending, the main drivers of the expansion, decreased significantly later in the year and caused the economy to slow even further as reflected in the Q4 GDP release of 1.4%. Concerned about [GRAPHIC OMITTED] ASSET CLASS PERFORMANCE COMPARISON % returns during the report period This graph compares the performance of various asset classes during the reporting period. [GRAPHIC OMITTED] EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Lehman Aggregate Bond Index MSCI EAFE Index Russell 2000 Small-Cap Index S&P 500 Index 3 Month T-Bill Cumulative Return 01/07/00 -0.06 -4.56 -3.23 -1.89 0.12 01/14/00 -0.52 -2.21 0.6 -0.28 0.2 01/21/00 -0.68 -4.39 5.82 -1.9 0.3 01/28/00 -0.01 -4.83 0.05 -7.42 0.38 02/04/00 0.12 -2.85 4.21 -2.99 0.51 02/11/00 -0.17 -2.3 6.54 -5.53 0.63 02/18/00 0.37 -3.76 8.26 -8.32 0.68 02/25/00 1.02 -3.01 10.45 -9.19 0.8 03/03/00 1.2 -0.97 18.72 -3.92 0.91 03/10/00 1 -0.99 19.84 -4.88 1.01 03/17/00 1.69 -2.17 14.09 -0.15 1.14 03/24/00 1.57 -0.25 14.01 4.14 1.25 03/31/00 2.2 -0.4 7.09 2.27 1.39 04/07/00 3.02 -1.4 7.88 3.48 1.51 04/14/00 2.95 -4.85 -9.8 -7.42 1.64 04/21/00 2.85 -5.64 -4.23 -2.1 1.7 04/28/00 1.9 -5.73 0.64 -0.81 1.85 05/05/00 0.47 -6.12 1.98 -2.16 1.99 05/12/00 0.34 -7.08 -2.33 -2.95 2.09 05/19/00 0.54 -10.41 -4.56 -3.91 2.27 05/26/00 1.64 -9.93 -8.97 -5.89 2.36 06/02/00 2.83 -3.95 2.11 1.04 2.47 06/09/00 3.15 -4.1 4.16 -0.35 2.58 06/16/00 4.02 -4.46 2.37 0.17 2.71 06/23/00 3.05 -5.35 1.75 -1.4 2.83 06/30/00 3.97 -4.62 3.05 -0.44 2.93 07/07/00 4.44 -3.74 5.17 1.23 3.02 07/14/00 4.29 -4.15 8.07 3.35 3.12 07/21/00 4.88 -6.31 4.11 1.32 3.24 07/28/00 4.87 -9.35 -2.34 -2.81 3.35 08/04/00 5.66 -9.73 0.37 0.22 3.48 08/11/00 5.85 -8.41 1.74 0.83 3.59 08/18/00 5.98 -7.68 2.82 2.19 3.72 08/25/00 6.38 -7.03 4.77 3.2 3.82 09/01/00 6.7 -6.06 8.16 4.32 3.97 09/08/00 6.62 -9.9 6.8 2.51 4.13 09/13/00 6.44 -11.95 6.02 0.54 4.26 09/22/00 6.68 -13.19 3.63 -0.63 4.38 09/29/00 7.13 -12.67 4.21 -1.4 4.5 10/06/00 7.1 -12.93 -1.84 -3.29 4.63 10/13/00 7.48 -15.54 -3.93 -5.68 4.76 10/20/00 8.05 -15.71 -2.51 -4.12 4.87 10/27/00 7.92 -14.42 -4.01 -5.3 4.98 11/03/00 7.72 -11.72 1.6 -2 5.05 11/10/00 7.93 -13.63 -3.73 -6.17 5.23 11/17/00 8.41 -14.94 -3.34 -6.05 5.37 11/24/00 8.73 -17.27 -5.49 -7.84 5.5 12/01/00 9.33 -15.87 -8.47 -9.53 5.64 12/08/00 10.36 -14.84 -3.99 -5.77 5.78 12/15/00 11.19 -15.73 -8.17 -9.74 5.9 12/22/00 11.91 -16.69 -7.16 -10.16 6.2 12/29/00 11.63 -14.17 -3.02 -9.1 6.31
S&P 500(R) INDEX: measures U.S. large-cap stocks RUSSELL 2000(R) INDEX: measures U.S. small-cap stocks THREE-MONTH TREASURY BILLS (T-BILLS): measures short-term U.S. Treasury obligations MSCI-EAFE(R) INDEX: measures (in U.S. dollars) large-cap stocks in Europe, Austalasia and the Far East LEHMAN BROTHERS U.S. AGGREGATE BOND INDEX: measures the U.S. bond market These figures assume dividends and distributions were reinvested. Index figures don't include trading and management costs, which would lower performance. Indices are unmanaged and you can't invest in them directly. Past performance isn't an indication of future results. Data source: Charles Schwab & Co., Inc. (Schwab). 5 this dramatic reduction, the Fed reversed its tightening bias and reduced interest rates from 6.5% to 6.0% on January 3, 2001. UNEMPLOYMENT HITS NEW LOWS After trending downward for years, unemployment fell below the 4% mark (a level once considered improbable without high inflation) in April 2000, reaching a three-decade low. After trending slightly upward during the summer months, the unemployment rate settled back to the 4% level by year end. While the unemployment rate is low by historical standards, there have been some ominous indicators pointing to a weakening labor market. The manufacturing sector shed over 60,000 jobs in December while the average hours worked in that sector declined for the third consecutive month. Additionally, reports detailing job cuts in many companies, especially in the technology sector, were prevalent. Consensus forecasts call for unemployment to continue to rise during the first half of 2001 as the pace of growth moderates. [GRAPHIC OMITTED] ECONOMIC FACTORS AND THEIR EFFECTS ON THESE FUNDS. The following charts show recent figures for common measures of the state of the U.S. economy and the interest rate environment. While the relationship of each of these factors to the performance of the funds is complex, the captions over each chart and the discussion above include analysis of how we believe these factors may have influenced market behavior during the report period. REAL GDP GROWTH Annualized growth rate for each quarter shown THE U.S. ECONOMY HAS GROWN STEADILY FOR THE PAST TEN YEARS BUT SLOWED DRAMATICALLY IN THE 4TH QUARTER OF 2000. REAL GDP GREW JUST 1.4% DURING THE QUARTER, SIGNIFICANTLY BELOW THE 5.2% RATE DURING THE FIRST HALF OF 2000. [GRAPHIC OMITTED] EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC Mar-91 -2 Jun-91 2.3 Sep-91 1 Dec-91 2.2 Mar-92 3.8 Jun-92 3.8 Sep-92 3.1 Dec-92 5.4 Mar-93 -0.1 Jun-93 2.5 Sep-93 1.8 Dec-93 6.2 Mar-94 3.4 Jun-94 5.7 Sep-94 2.2 Dec-94 5 Mar-95 1.5 Jun-95 0.8 Sep-95 3.1 Dec-95 3.2 Mar-96 2.9 Jun-96 6.8 Sep-96 2 Dec-96 4.6 Mar-97 4.4 Jun-97 5.9 Sep-97 4.2 Dec-97 2.8 Mar-98 6.5 Jun-98 2.9 Sep-98 3.4 Dec-98 5.6 Mar-99 3.5 Jun-99 2.5 Sep-99 5.7 Dec-99 8.3 Mar-00 4.8 Jun-00 5.6 Sep-00 2.2 Dec-00 1.4 Gross domestic product (GDP), a broad measure of the goods and services produced in the United States during a given time period, is a prime indicator of the health of the country's economy. Typically, investors see increases in GDP as a positive since it indicates stronger demand, production and corporate earnings. The figures shown here are adjusted for inflation. Data source: Bloomberg L.P. 6 STOCKS STUMBLE; MOST BONDS POST HEALTHY RETURNS The equity markets continued to grow at a rapid rate as 2000 began and Y2K fears subsided. Most sectors of the stock market reached their highs in the early spring, before beginning a steady decline that continued throughout the rest of the year. The initial decline occurred when the Fed raised short-term interest rates, increasing pressure on stocks. Stocks of all sizes, both in the U.S. and overseas, posted negative returns for the period. Price declines were particularly steep in technology issues as investors turned their attention to more conservative investments. The NASDAQ composite index fell from its high of 5,048.62 in March to 2,470.52 at year end, a stunning decline of over 50%. As evidence began to emerge that the economy was slowing, many companies issued earnings warnings, sparking fears over equity valuations and leading to further declines. [GRAPHIC OMITTED] U.S. UNEMPLOYMENT RATE ADJUSTED FOR SEASONAL VARIATIONS UNEMPLOYMENT HIT A THREE-DECADE LOW OF 3.9% IN APRIL 2000. ALTHOUGH IT TRENDED UP TO 4.1% DURING THE SUMMER MONTHS, IT CLOSED THE REPORTING PERIOD AT 4%, JUST ABOVE THE THREE-DECADE LOW. [GRAPHIC OMITTED] EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC Jan-91 6.4 Feb-91 6.6 Mar-91 6.8 Apr-91 6.7 May-91 6.9 Jun-91 6.9 Jul-91 6.8 Aug-91 6.9 Sep-91 6.9 Oct-91 7 Nov-91 7 Dec-91 7.3 Jan-92 7.3 Feb-92 7.4 Mar-92 7.4 Apr-92 7.4 May-92 7.6 Jun-92 7.8 Jul-92 7.7 Aug-92 7.6 Sep-92 7.6 Oct-92 7.3 Nov-92 7.4 Dec-92 7.4 Jan-93 7.3 Feb-93 7.1 Mar-93 7 Apr-93 7.1 May-93 7.1 Jun-93 7 Jul-93 6.9 Aug-93 6.8 Sep-93 6.7 Oct-93 6.8 Nov-93 6.6 Dec-93 6.5 Jan-94 6.8 Feb-94 6.6 Mar-94 6.5 Apr-94 6.4 May-94 6.1 Jun-94 6.1 Jul-94 6.3 Aug-94 6 Sep-94 5.8 Oct-94 5.8 Nov-94 5.6 Dec-94 5.5 Jan-95 5.6 Feb-95 5.4 Mar-95 5.4 Apr-95 5.8 May-95 5.6 Jun-95 5.6 Jul-95 5.7 Aug-95 5.7 Sep-95 5.6 Oct-95 5.5 Nov-95 5.6 Dec-95 5.6 Jan-96 5.7 Feb-96 5.5 Mar-96 5.5 Apr-96 5.5 May-96 5.6 Jun-96 5.3 Jul-96 5.5 Aug-96 5.1 Sep-96 5.2 Oct-96 5.2 Nov-96 5.4 Dec-96 5.4 Jan-97 5.3 Feb-97 5.3 Mar-97 5.2 Apr-97 5 May-97 4.9 Jun-97 5 Jul-97 4.8 Aug-97 4.8 Sep-97 4.9 Oct-97 4.7 Nov-97 4.6 Dec-97 4.7 Jan-98 4.7 Feb-98 4.6 Mar-98 4.7 Apr-98 4.3 May-98 4.4 Jun-98 4.5 Jul-98 4.5 Aug-98 4.5 Sep-98 4.5 Oct-98 4.5 Nov-98 4.4 Dec-98 4.4 Jan-99 4.3 Feb-99 4.4 Mar-99 4.2 Apr-99 4.3 May-99 4.2 Jun-99 4.3 Jul-99 4.3 Aug-99 4.2 Sep-99 4.2 Oct-99 4.1 Nov-99 4.1 Dec-99 4.1 Jan-00 4 Feb-00 4.1 Mar-00 4.1 Apr-00 3.9 May-00 4.1 Jun-00 4 Jul-00 4 Aug-00 4.1 Sep-00 3.9 Oct-00 3.9 Nov-00 4 Dec-00 4 This measures the portion of the U.S. labor force that is unemployed and is either seeking a job or waiting to return to one. Low unemployment often accompanies prosperity and is generally a positive factor for investors, although very low unemployment may boost inflation as employers raise pay to compete for workers. Rising unemployment may mean a softening economy. Data source: Bloomberg L.P. MEASURES OF INFLATION Annualized figures for the Consumer Price Index (monthly) and Employment Cost Index (quarterly) CPI WAS UP 3.4% FOR THE 12 MONTHS ENDED DECEMBER 31, 2000 (2.6% IF FOOD AND ENERGY ARE EXCLUDED). ECI ROSE 4.1% (FOR THE 12 MONTHS ENDED DECEMBER 31, 2000.) [GRAPHIC OMITTED] EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC CPI ECI Jan-91 5.6 4.9 Feb-91 5.3 4.9 Mar-91 4.9 4.6 Apr-91 4.8 4.6 May-91 5 4.6 Jun-91 4.7 4.6 Jul-91 4.4 4.3 Aug-91 3.8 4.3 Sep-91 3.4 4.3 Oct-91 2.8 4.3 Nov-91 3.1 4.3 Dec-91 3 4.3 Jan-92 2.7 4 Feb-92 2.8 4 Mar-92 3.2 4 Apr-92 3.2 3.6 May-92 3 3.6 Jun-92 3 3.6 Jul-92 3.2 3.5 Aug-92 3.1 3.5 Sep-92 3 3.5 Oct-92 3.3 3.5 Nov-92 3.1 3.5 Dec-92 3 3.5 Jan-93 3.2 3.5 Feb-93 3.2 3.5 Mar-93 3 3.5 Apr-93 3.2 3.6 May-93 3.2 3.6 Jun-93 3 3.6 Jul-93 2.8 3.6 Aug-93 2.8 3.6 Sep-93 2.8 3.6 Oct-93 2.8 3.5 Nov-93 2.7 3.5 Dec-93 2.8 3.5 Jan-94 2.5 3.2 Feb-94 2.5 3.2 Mar-94 2.6 3.2 Apr-94 2.4 3.2 May-94 2.3 3.2 Jun-94 2.5 3.2 Jul-94 2.7 3.2 Aug-94 2.9 3.2 Sep-94 3 3.2 Oct-94 2.6 3 Nov-94 2.7 3 Dec-94 2.6 3 Jan-95 2.8 2.9 Feb-95 2.9 2.9 Mar-95 2.9 2.9 Apr-95 2.8 2.9 May-95 3.1 2.9 Jun-95 3 2.9 Jul-95 2.8 2.7 Aug-95 2.6 2.7 Sep-95 2.5 2.7 Oct-95 2.8 2.8 Nov-95 2.6 2.8 Dec-95 2.6 2.8 Jan-96 2.7 2.8 Feb-96 2.7 2.8 Mar-96 2.9 2.8 Apr-96 2.8 2.9 May-96 2.9 2.9 Jun-96 2.8 2.9 Jul-96 2.9 2.8 Aug-96 2.8 2.8 Sep-96 3 2.8 Oct-96 3 2.9 Nov-96 3.2 2.9 Dec-96 3.2 2.9 Jan-97 3 2.9 Feb-97 3 2.9 Mar-97 2.8 2.9 Apr-97 2.5 2.8 May-97 2.2 2.8 Jun-97 2.3 2.8 Jul-97 2.2 3 Aug-97 2.2 3 Sep-97 2.2 3 Oct-97 2.1 3.3 Nov-97 1.9 3.3 Dec-97 1.7 3.3 Jan-98 1.6 3.3 Feb-98 1.4 3.3 Mar-98 1.4 3.3 Apr-98 1.5 3.5 May-98 1.7 3.5 Jun-98 1.6 3.5 Jul-98 1.7 3.7 Aug-98 1.7 3.7 Sep-98 1.4 3.7 Oct-98 1.4 3.4 Nov-98 1.5 3.4 Dec-98 1.6 3.4 Jan-99 1.7 3 Feb-99 1.7 3 Mar-99 1.8 3 Apr-99 2.3 3.2 May-99 2.1 3.2 Jun-99 2 3.2 Jul-99 2.1 3.1 Aug-99 2.3 3.1 Sep-99 2.6 3.1 Oct-99 2.6 3.4 Nov-99 2.6 3.4 Dec-99 2.7 3.4 Jan-00 2.7 4.3 Feb-00 3.2 4.3 Mar-00 3.8 4.3 Apr-00 3.1 4.4 May-00 3.2 4.4 Jun-00 3.7 4.4 Jul-00 3.7 4.3 Aug-00 3.4 4.3 Sep-00 3.5 4.3 Oct-00 3.4 Nov-00 3.4 Dec-00 The Consumer Price Index (CPI) tracks changes in the cost of goods and services and is the most common measure of inflation. The Employment Cost Index (ECI) measures the cost of employing workers, including benefits costs. Financial markets are very sensitive to increases in inflation because of the potentially negative impact on corporate earnings, investors and consumers. Data source: Bloomberg L.P. 7 Yields on short-term debt securities generally increased during the reporting period, due to a combination of a robust U.S. economy and the three rate hikes imposed by the Fed in an effort to stave off inflationary threats. Short-term municipal yields generally climbed in tandem with short-term taxable yields, due to the Fed's aggressive rate hikes. During the report period 90-day municipal commercial paper reached a yield high of 4.5% and three-month T-bill yields reached a high of 6.40%. [GRAPHIC OMITTED] While short-term interest rates generally rose during the report period, intermediate- and long-term bond rates actually fell. A major factor for bonds was the U.S. Treasury's decision to use some of the budget surplus to buy back its own bonds. This action resulted in an inversion of the normal relationship between short-term and long-term rates, creating a situation where short-term bonds paid higher yields than long-term bonds. This scenario gave a boost to bond prices and to returns of most bond investments over the period. During the report period, the Lehman Brothers U.S. Aggregate Bond Index gained 11.63% while the Lehman General Muni Bond Index was up 11.68%. YIELDS OF U.S. TREASURY BONDS Effective yields of five-year and ten-year Treasuries WITH ITS BUYBACK PROGRAM, THE TREASURY SUDDENLY EMERGED AS A MAJOR CUSTOMER FOR ITS OWN BONDS, DRIVING PRICES UP (AND YIELDS DOWN) ON LONG-TERM TREASURIES. [GRAPHIC OMITTED] EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC 5 Yr 10 Yr Jan-91 7.61 8.01 Feb-91 7.7 8.03 Mar-91 7.75 8.06 Apr-91 7.61 8.01 May-91 7.71 8.06 Jun-91 7.88 8.23 Jul-91 7.74 8.15 Aug-91 7.34 7.82 Sep-91 6.91 7.45 Oct-91 6.74 7.46 Nov-91 6.48 7.38 Dec-91 5.93 6.7 Jan-92 6.43 7.27 Feb-92 6.56 7.25 Mar-92 6.92 7.53 Apr-92 6.88 7.58 May-92 6.6 7.32 Jun-92 6.27 7.12 Jul-92 5.82 6.71 Aug-92 5.58 6.6 Sep-92 5.32 6.35 Oct-92 5.89 6.79 Nov-92 6.22 6.94 Dec-92 5.99 6.69 Jan-93 5.55 6.36 Feb-93 5.21 6.02 Mar-93 5.24 6.02 Apr-93 5.11 6.01 May-93 5.37 6.15 Jun-93 5.05 5.78 Jul-93 5.15 5.81 Aug-93 4.79 5.45 Sep-93 4.77 5.38 Oct-93 4.85 5.43 Nov-93 5.16 5.82 Dec-93 5.21 5.79 Jan-94 5.02 5.64 Feb-94 5.57 6.13 Mar-94 6.23 6.74 Apr-94 6.64 7.04 May-94 6.76 7.15 Jun-94 6.95 7.32 Jul-94 6.73 7.11 Aug-94 6.8 7.17 Sep-94 7.28 7.6 Oct-94 7.49 7.81 Nov-94 7.79 7.91 Dec-94 7.83 7.82 Jan-95 7.51 7.58 Feb-95 7.04 7.2 Mar-95 7.07 7.2 Apr-95 6.88 7.06 May-95 6.05 6.28 Jun-95 5.97 6.2 Jul-95 6.16 6.43 Aug-95 6.07 6.28 Sep-95 6.02 6.18 Oct-95 5.81 6.02 Nov-95 5.52 5.74 Dec-95 5.38 5.57 Jan-96 5.24 5.58 Feb-96 5.73 6.1 Mar-96 6.09 6.33 Apr-96 6.41 6.67 May-96 6.63 6.85 Jun-96 6.46 6.71 Jul-96 6.57 6.79 Aug-96 6.73 6.94 Sep-96 6.46 6.7 Oct-96 6.07 6.34 Nov-96 5.83 6.04 Dec-96 6.21 6.42 Jan-97 6.25 6.49 Feb-97 6.39 6.55 Mar-97 6.75 6.9 Apr-97 6.57 6.72 May-97 6.5 6.66 Jun-97 6.38 6.5 Jul-97 5.9 6.01 Aug-97 6.22 6.34 Sep-97 5.99 6.1 Oct-97 5.71 5.83 Nov-97 5.84 5.87 Dec-97 5.71 5.74 Jan-98 5.38 5.51 Feb-98 5.59 5.62 Mar-98 5.62 5.65 Apr-98 5.64 5.67 May-98 5.55 5.55 Jun-98 5.47 5.45 Jul-98 5.5 5.49 Aug-98 4.8 4.98 Sep-98 4.22 4.42 Oct-98 4.23 4.61 Nov-98 4.48 4.71 Dec-98 4.54 4.65 Jan-99 4.55 4.65 Feb-99 5.22 5.29 Mar-99 5.1 5.24 Apr-99 5.21 5.35 May-99 5.58 5.62 Jun-99 5.65 5.78 Jul-99 5.79 5.9 Aug-99 5.87 5.97 Sep-99 5.75 5.88 Oct-99 5.95 6.02 Nov-99 6.11 6.19 Dec-99 6.34 6.44 Jan-00 6.68 6.67 Feb-00 6.6 6.41 Mar-00 6.31 6 Apr-00 6.54 6.21 May-00 6.52 6.27 Jun-00 6.18 6.03 Jul-00 6.15 6.03 Aug-00 5.97 5.72 Sep-00 5.85 5.8 Oct-00 5.81 5.75 Nov-00 5.43 5.47 Dec-00 4.98 5.11 Yields, or interest rates, represent the cost of borrowing money. Rapid economic growth or the expectation of higher inflation can drive rates up, while the opposite conditions can push rates down. Data source: Bloomberg L.P. 90-DAY COMMERCIAL PAPER AND THREE-MONTH TREASURY BILL YIELDS SHORT-TERM YIELDS ROSE DURING THE FIRST HALF OF THE REPORT PERIOD DUE TO THE FED'S ACTIONS TO INCREASE INTEREST RATES BEFORE STABILIZING DURING THE SECOND HALF OF THE YEAR. [GRAPHIC OMITTED] EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC Three-Month Treasury Bill 90-Day Commercial Paper 1/00 5.38 5.66 5.41 5.71 5.47 5.77 5.63 5.79 2/00 5.67 5.85 5.64 5.86 5.75 5.86 5.77 5.88 3/00 5.82 5.89 5.9 5.91 5.88 6 5.91 6.05 5.88 6.09 4/00 5.9 6.09 5.78 6.08 5.8 6.12 5.83 6.17 5/00 5.97 6.41 6.14 6.54 5.88 6.59 5.83 6.61 6/00 5.87 6.62 5.91 6.57 5.83 6.57 5.85 6.57 5.86 6.58 7/00 6.04 6.53 6.18 6.51 6.12 6.52 6.19 6.51 8/00 6.23 6.51 6.31 6.49 6.27 6.48 6.3 6.48 9/00 6.27 6.48 6.16 6.52 6.14 6.52 6.16 6.46 6.22 6.47 10/00 6.25 6.5 6.19 6.51 6.31 6.52 6.34 6.5 11/00 6.4 6.5 6.37 6.49 6.35 6.51 6.37 6.48 12/00 6.22 6.5 6.07 6.43 6.04 6.33 5.27 6.28 5.9 6.28 Commercial paper and T-bills are two types of investments for many money market funds. Commercial paper consists of short-term obligations issued by banks, corporations and other institutions. T-bills are issued by the U.S. government with three-month, six-month and one-year maturities. The yields of commercial paper and T-bills normally move in the same direction and are impacted by the Federal Funds Rate. The spread between the two yields is typically an indication of investors' current sentiment of commercial paper's risk versus the higher credit quality, but lower-yielding T-bill. Data source: Bloomberg L.P. 8 LOOKING AHEAD: GROWTH MAY CONTINUE, BUT RATE MAY SLOW. Recent evidence indicates that the economy has indeed slowed and while there has been talk of a possible recession in the press, the consensus among most economists is that the U.S. economy appears poised for continued growth, albeit at much lower rates than those of the past few years. In a recent survey of 54 leading U.S. economists in THE WALL STREET JOURNAL, the consensus estimate for GDP growth was 2% in Q1 2001 and 2.1% in Q2 2001. The slowdown also increases the chances that some form of a tax cut proposed by President Bush may be enacted. It is anticipated that the combination of a reduction in short-term rates and a tax cut should provide the necessary stimulus to avoid an economic downturn, while setting the stage for continued growth in the second half of the year. 90-DAY MUNICIPAL COMMERCIAL PAPER YIELDS SHORT-TERM MUNICIPAL YIELDS GENERALLY TRACKED THE MOVEMENT OF SHORT-TERM TAXABLE YIELDS DURING THE REPORT PERIOD. [GRAPHIC OMITTED] EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC 90 Day Municipal Commercial Paper 1/7/00 3.6 1/14/00 3.6 1/21/00 3.6 1/28/00 3.6 2/4/00 3.7 2/11/00 3.7 2/18/00 3.7 2/25/00 3.9 3/3/00 3.9 3/10/00 4 3/17/00 4 3/24/00 4 3/31/00 4.1 4/7/00 4 4/14/00 4 4/21/00 4.25 4/28/00 4.4 5/5/00 4.6 5/12/00 4.75 5/19/00 4.45 5/26/00 4.5 6/2/00 4.38 6/9/00 4.3 6/16/00 4.3 6/23/00 4.4 6/30/00 4.5 7/7/00 4.2 7/14/00 4.25 7/21/00 4.25 7/28/00 4.2 8/4/00 4.25 8/11/00 4.2 8/18/00 4.15 8/25/00 4.2 9/1/00 4.2 9/8/00 4.25 9/15/00 4.25 9/22/00 4.4 9/29/00 4.35 10/6/00 4.35 10/13/00 4.3 10/20/00 4.35 10/27/00 4.35 11/3/00 4.25 11/10/00 4.45 11/17/00 4.6 11/24/00 4.35 12/1/00 4.35 12/8/00 4.15 12/15/00 4.25 12/22/00 4.2 12/29/00 4.15 Municipal commercial paper generally consists of short-term obligations of states and municipalities. While the movements of municipal commercial paper yields are influenced by many of the same factors that affect taxable commercial paper, they are affected by additional factors, including seasonal supply and demand imbalances, which are unique to the short-term municipal securities market. Traditionally, short-term municipal rates experience a steep decline in January as large amounts of cash flow into municipal money market funds, creating more demand for these securities than supply. Likewise, late April is typically characterized by significant cash outflows (driven by shareholder tax payments) which lessen demand, causing yields to climb higher. Data source: Bloomberg L.P. 9 PORTFOLIO MANAGEMENT THE PORTFOLIO MANAGEMENT TEAM STEPHEN B. WARD, senior vice president and chief investment officer, has overall responsibility for the management of the funds' portfolios. Steve joined Charles Schwab Investment Management, Inc. (CSIM) as vice president and portfolio manager in April 1991 and was promoted to his current position in August 1993. Prior to joining CSIM, Steve was vice president and portfolio manager at Federated Investors. WALTER BEVERIDGE, portfolio manager, has managed the Schwab Municipal Money Fund since April 1992, when he joined CSIM; the Schwab Pennsylvania Municipal Money Fund since its inception in February 1998; and the Schwab Florida Municipal Money Fund since its inception in March 1998. Prior to joining CSIM, Walter was a portfolio manager for the Benham Group. KEVIN SHAUGHNESSY, portfolio manager, has managed the Schwab California Municipal Money Fund, the Schwab New Jersey Municipal Money Fund and the Schwab New York Municipal Money Fund since September 2000, when he joined CSIM. Prior to joining CSIM, Kevin was a portfolio manager for Wells Capital Management. 10 SCHWAB MUNICIPAL MONEY FUND YIELD SUMMARY AS OF 12/31/00 1 SWEEP VALUE ADVANTAGE SHARES SHARES - -------------------------------------------------------------------------------- Seven-Day Yield 4.01% 4.22% - -------------------------------------------------------------------------------- Seven-Day Effective Yield 4.09% 4.31% - -------------------------------------------------------------------------------- Seven-Day Taxable-Equivalent Effective Yield2 6.77% 7.14% - -------------------------------------------------------------------------------- THE OPPORTUNITY FOR HIGHER AFTER-TAX YIELDS If you're in a high tax bracket, the federal tax-exempt income paid by the Schwab Municipal Money Fund may provide you with higher yields than taxable money funds on a taxable-equivalent basis.3 The figures below illustrate the yield advantage on a taxable-equivalent basis for both classes of the fund's shares compared to the average seven-day effective yield of 6.06% as of 12/26/00 for first-tier taxable money funds.4 SWEEP VALUE ADVANTAGE SHARES SHARES - -------------------------------------------------------------------------------- Yield Advantage over the Average Taxable Money Fund5 0.51% 0.87% - -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION The Schwab Municipal Money Fund invests in money market securities from states and municipal agencies around the country and from U.S. territories and possessions. The chart to the right illustrates the composition of the fund's portfolio as of December 31, 2000, and is not indicative of its holdings after that date. A complete list of the securities in the fund's portfolio as of December 31, 2000 is provided in the Schedule of Investments later in this report. Please remember that money market fund yields fluctuate and that past performance is no guarantee of future results. 1 A portion of the fund's expenses was reduced during the reporting period. Without this reduction, the fund's yields would have been lower. 2 Taxable-equivalent yield assumes a 2000 maximum federal regular income tax rate of 39.60%. 3 Income may be subject to state and local taxes and the federal alternative minimum tax (AMT). 4 Source: iMoneyNet, Inc.'s weekly average seven-day yield for the 322 funds in the first-tier retail category of taxable money funds as of 12/26/00. 5 Represents seven-day period ended 12/26/00 the last day of the reporting period for which iMoneyNet, Inc. data was available. This yield advantage relationship was not consistent throughout the reporting period. PORTFOLIO COMPOSITION AS A PERCENTAGE OF FUND INVESTMENTS as of 12/31/00 [GRAPHIC OMITTED] EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC Variable Rate Obligations 58.2% Tender Option Bonds 14.3% Anticipation Notes 8.2% Tax-Exempt Commercial Paper 6.9% Put Bonds 6.5% Revenue Bonds 3.7% Other 2.2% 11 SCHWAB CALIFORNIA MUNICIPAL MONEY FUND YIELD SUMMARY AS OF 12/31/00 1 SWEEP VALUE ADVANTAGE SHARES SHARES - -------------------------------------------------------------------------------- Seven-Day Yield 3.46% 3.66% - -------------------------------------------------------------------------------- Seven-Day Effective Yield 3.52% 3.72% - -------------------------------------------------------------------------------- Seven-Day Taxable-Equivalent Effective Yield2 6.43% 6.79% - -------------------------------------------------------------------------------- THE OPPORTUNITY FOR HIGHER AFTER-TAX YIELDS If you're in a high tax bracket, the federal and California tax-exempt income paid by the Schwab California Municipal Money Fund may provide you with higher yields than taxable money funds on a taxable-equivalent basis.3 The figures below illustrate the yield advantage on a taxable-equivalent basis for both classes of the fund's shares compared to the average seven-day effective yield of 6.06% as of 12/26/00 for first-tier taxable money funds.4 SWEEP VALUE ADVANTAGE SHARES SHARES - -------------------------------------------------------------------------------- Yield Advantage over the Average Taxable Money Fund5 0.13% 0.50% - -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION The Schwab California Municipal Money Fund invests in money market securities from California state and municipal issuers and from U.S. territories and possessions. The chart to the right illustrates the composition of the fund's portfolio as of December 31, 2000 and is not indicative of its holdings after that date. A complete list of the securities in the fund's portfolio as of December 31, 2000 is provided in the Schedule of Investments later in this report. Please remember that money market fund yields fluctuate and that past performance is no guarantee of future results. 1 A portion of the fund's expenses was reduced during the reporting period. Without this reduction, the fund's yields would have been lower. 2 Taxable-equivalent yield assumes a 2000 maximum combined federal regular income and California state personal income tax rate of 45.22%. 3 Income may be subject to the federal alternative minimum tax (AMT). 4 Source: iMoneyNet, Inc.'s weekly average seven-day yield for the 322 funds in the first-tier retail category of taxable money funds as of 12/26/00. 5 Represents seven-day period ended 12/26/00, the last day of the reporting period for which iMoneyNet, Inc. data was available. This yield advantage relationship was not consistent throughout the reporting period. PORTFOLIO COMPOSITION AS A PERCENTAGE OF FUND INVESTMENTS as of 12/31/00 [GRAPHIC OMITTED] EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC Variable Rate Obligations 45.1% Tax-Exempt Commercial Paper 21.1% Tender Option Bonds 13.9% Anticipation Notes 10.4% Revenue Bonds 7.7% Other 1.8% 12 SCHWAB NEW YORK MUNICIPAL MONEY FUND YIELD SUMMARY AS OF 12/31/00 1 SWEEP VALUE ADVANTAGE SHARES SHARES - -------------------------------------------------------------------------------- Seven-Day Yield 3.81% 4.05% - -------------------------------------------------------------------------------- Seven-Day Effective Yield 3.88% 4.13% - -------------------------------------------------------------------------------- Seven-Day Taxable-Equivalent Effective Yield2 7.19% 7.65% - -------------------------------------------------------------------------------- THE OPPORTUNITY FOR HIGHER AFTER-TAX YIELDS If you're in a high tax bracket, the federal and New York state and New York local tax-exempt income paid by the Schwab New York Municipal Money Fund may provide you with higher yields than taxable money funds on a taxable-equivalent basis.3 The figures below illustrate the yield advantage on a taxable-equivalent basis for both classes of the fund's shares compared to the average seven-day effective yield of 6.06% as of 12/26/00 for first-tier taxable money funds.4 SWEEP VALUE ADVANTAGE SHARES SHARES - -------------------------------------------------------------------------------- Yield Advantage over the Average Taxable Money Fund5 0.92% 1.38% - -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION The Schwab New York Municipal Money Fund invests in money market securities from New York state and municipal issuers and from U.S. territories and possessions. The chart to the right illustrates the composition of the fund's portfolio as of December 31, 2000 and is not indicative of its holdings after that date. A complete list of the securities in the fund's portfolio as of December 31, 2000 is provided in the Schedule of Investments later in this report. Please remember that money market fund yields fluctuate and that past performance is no guarantee of future results. 1 A portion of the fund's expenses was reduced during the reporting period. Without this reduction, the fund's yields would have been lower. 2 Taxable-equivalent yield assumes a 2000 maximum combined federal regular income and New York state and New York City personal income tax rate of 46.02%. 3 Income may be subject to the federal alternative minimum tax (AMT). 4 Source: iMoneyNet, Inc.'s weekly average seven-day yield for the 322 funds in the first-tier retail category of taxable money funds as of 12/26/00. 5 Represents seven-day period ended 12/26/00 the last day of the reporting period for which iMoneyNet, Inc. data was available. This yield advantage relationship was not consistent throughout the reporting period. PORTFOLIO COMPOSITION AS A PERCENTAGE OF FUND INVESTMENTS as of 12/31/00 [GRAPHIC OMITTED] EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC Variable Rate Obligations 40.6% Tender Option Bonds 28.4% Anticipation Notes 11.9% Tax-Exempt Commercial Paper 8.1% Revenue Bonds 7.2% Put Bonds 2.1% General Obligations 1.7% 13 SCHWAB NEW JERSEY MUNICIPAL MONEY FUND YIELD SUMMARY AS OF 12/31/00 1 SWEEP SHARES - -------------------------------------------------------------------------------- Seven-Day Yield 3.77% - -------------------------------------------------------------------------------- Seven-Day Effective Yield 3.82% - -------------------------------------------------------------------------------- Seven-Day Taxable-Equivalent Effective Yield2 6.76% - -------------------------------------------------------------------------------- THE OPPORTUNITY FOR HIGHER AFTER-TAX YIELDS If you're in a high tax bracket, the federal and New Jersey tax-exempt income paid by the Schwab New Jersey Municipal Money Fund may provide you with higher yields than those of taxable money funds on a taxable-equivalent basis.3 The figure below illustrates the yield advantage on a taxable-equivalent basis of the fund's shares compared to the average seven-day effective yield of 6.06% as of 12/26/00 for first-tier taxable money funds.4 SWEEP SHARES - -------------------------------------------------------------------------------- Yield Advantage over the Average Taxable Money Fund5 0.60% - -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION The Schwab New Jersey Municipal Money Fund invests in money market securities from New Jersey state and municipal issuers and from U.S. territories and possessions. The chart to the right illustrates the composition of the fund's portfolio as of December 31, 2000 and is not indicative of its holdings after that date. A complete list of the securities in the fund's portfolio as of December 31, 2000 is provided in the Schedule of Investments later in this report. Please remember that money market fund yields fluctuate and that past performance is no guarantee of future results. 1 A portion of the fund's expenses was reduced during the reporting period. Without this reduction, the fund's yields would have been lower. 2 Taxable-equivalent yield assumes a 2000 maximum combined federal regular income and New Jersey state personal income tax rate of 43.45%. 3 Income may be subject to the federal alternative minimum tax (AMT). 4 Source: iMoneyNet, Inc.'s weekly average seven-day yield for the 322 funds in the first-tier retail category of taxable money funds as of 12/26/00. 5 Represents seven-day period ended 12/26/00, the last day of the reporting period for which iMoneyNet, Inc. data was available. This yield advantage relationship was not consistent throughout the reporting period. PORTFOLIO COMPOSITION AS A PERCENTAGE OF FUND INVESTMENTS as of 12/31/00 [GRAPHIC OMITTED] EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC Tender Option Bonds 33.2% Variable Rate Obligations 32.5% Anticipation Notes 17.2% Tax-Exempt Commercial Paper 9.4% Revenue Bonds 5.3% General Obligations 2.4% 14 SCHWAB PENNSYLVANIA MUNICIPAL MONEY FUND YIELD SUMMARY AS OF 12/31/00 1 Sweep Shares Seven-Day Yield 3.96% - -------------------------------------------------------------------------------- Seven-Day Effective Yield 4.04% - -------------------------------------------------------------------------------- Seven-Day Taxable-Equivalent Effective Yield2 6.88% - -------------------------------------------------------------------------------- THE OPPORTUNITY FOR HIGHER AFTER-TAX YIELDS If you're in a high tax bracket, the federal and Pennsylvania tax-exempt income paid by the Schwab Pennsylvania Municipal Money Fund may provide you with higher yields than taxable money funds on a taxable-equivalent basis.3 The figure below illustrates the yield advantage on a taxable-equivalent basis of the fund's shares compared to the average seven-day effective yield of 6.06% as of 12/26/00 for first-tier taxable money funds.4 SWEEP SHARES - -------------------------------------------------------------------------------- Yield Advantage over the Average Taxable Money Fund5 0.68% - -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION The Schwab Pennsylvania Municipal Money Fund invests in money market securities from Pennsylvania state and municipal issuers and from U.S. territories and possessions. The chart to the right illustrates the composition of the fund's portfolio as of December 31, 2000 and is not indicative of its holdings after that date. A complete list of the securities in the fund's portfolio as of December 31, 2000 is provided in the Schedule of Investments later in this report. Please remember that money market fund yields fluctuate and that past performance is no guarantee of future results. 1 A portion of the fund's expenses was reduced during the reporting period. Without this reduction, the fund's yields would have been lower. 2 Taxable-equivalent yield assumes a 2000 maximum combined federal regular income tax and Pennsylvania state personal income tax rate of 41.29%. 3 Income may be subject to the federal alternative minimum tax (AMT). 4 Source: iMoneyNet, Inc.'s weekly average seven-day yield for the 322 funds in the first-tier category of taxable money funds as of 12/26/00. 5 Represents seven-day period ended 12/26/00, the last day of the reporting period for which iMoneyNet, Inc. data was available. This yield advantage relationship was not consistent throughout the reporting period. PORTFOLIO COMPOSITION AS A PERCENTAGE OF FUND INVESTMENTS as of 12/31/00 [GRAPHIC OMITTED] EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC Variable Rate Obligations 52.5% Tender Option Bonds 18.5% General Obligations 12.0% Revenue Bonds 10.3% Tax-Exempt Commercial Paper 4.0% Anticipation Notes 2.7% 15 SCHWAB FLORIDA MUNICIPAL MONEY FUND YIELD SUMMARY AS OF 12/31/00 1 SWEEP SHARES - -------------------------------------------------------------------------------- Seven-Day Yield 4.00% - -------------------------------------------------------------------------------- Seven-Day Effective Yield 4.08% - -------------------------------------------------------------------------------- Seven-Day Taxable-Equivalent Effective Yield2 6.75% - -------------------------------------------------------------------------------- THE OPPORTUNITY FOR HIGHER AFTER-TAX YIELDS If you're in a high tax bracket, the tax-exempt income paid by the Schwab Florida Municipal Money Fund may provide you with higher yields than taxable money funds on a taxable-equivalent basis.3 The figure below illustrates the yield advantage on a taxable-equivalent basis of the fund's shares compared to the average seven-day effective yield of 6.06% as of 12/26/00 for first-tier taxable money funds.4 The fund also seeks to invest so that its shares are exempt from the Florida Intangible Tax. SWEEP SHARES - -------------------------------------------------------------------------------- Yield Advantage over the Average Taxable Money Fund5 0.52% - -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION The Schwab Florida Municipal Money Fund invests in money market securities from Florida state and municipal issuers and from U.S. territories and possessions. The chart to the right illustrates the composition of the fund's portfolio as of December 31, 2000 and is not indicative of its holdings after that date. A complete list of the securities in the fund's portfolio as of December 31, 2000 is provided in the Schedule of Investments later in this report. Please remember that money market fund yields fluctuate and that past performance is no guarantee of future results. 1 A portion of the fund's expenses was reduced during the reporting period. Without this reduction, the fund's yields would have been lower. 2 Taxable-equivalent yield assumes a 2000 maximum federal regular income tax rate of 39.60%. 3 Income may be subject to the federal alternative minimum tax (AMT). 4 Source: iMoneyNet, Inc.'s weekly average seven-day yield for the 322 funds in the first-tier category of taxable money funds as of 12/26/00. 5 Represents seven-day period ended 12/26/00, the last day of the reporting period for which iMoneyNet, Inc. data was available. This yield advantage relationship was not consistent throughout the reporting period. PORTFOLIO COMPOSITION AS A PERCENTAGE OF FUND INVESTMENTS as of 12/31/00 [GRAPHIC OMITTED] EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC Variable Rate Obligations 66.2% Tender Option Bonds 12.6% Anticipation Notes 7.4% Revenue Bonds 6.3% Tax-Exempt Commercial Paper 6.0% General Obligations & Certificates of Participation 1.5% 16 QUESTIONS TO THE PORTFOLIO MANAGEMENT TEAM Q. CAN YOU DESCRIBE THE SHORT-TERM MUNICIPAL INTEREST RATE ENVIRONMENT DURING THE 12-MONTH REPORTING PERIOD? A. Short-term municipal interest rates rose steadily during the first half of the reporting period. Fearing that record-low unemployment and strong consumer spending would fuel inflation, the Fed raised key short-term lending rates three times. As a result, the federal funds rate climbed to 6.5% in May, its highest level since 1991. The Fed's tightening, combined with lower investor demand for municipal money market securities, drove short-term municipal yields higher. During the first half of the year, the yield of the Bond Buyer Weekly One Year Note Index advanced from 3.91% on January 6 to 4.29% on June 29 (Source: Bond Buyer). During the second half of the reporting period, short-term municipal yields declined. Strong demand from investors exiting the volatile stock market and seeking more conservative municipal money market funds, along with the Fed's decision to leave interest rates unchanged, contributed to this environment. On the supply side, issuance of new municipal securities declined due to lower borrowing needs of state and local governments. The yield on the Bond Buyer Weekly One Year Note Index declined by 0.22% during the reporting period to as low as 4.07% on December 14 (Source: Bond Buyer). Q. HOW HAS THE PORTFOLIO MANAGEMENT TEAM ADJUSTED THE FUNDS' PORTFOLIOS IN RESPONSE TO CHANGES IN INTEREST RATES? A. We managed the dollar-weighted average maturity (DWAM) for the portfolios primarily to capitalize on the seasonal cycles typical of short-term municipal securities markets. At the end of December 1999, we had extended the maturity of the funds to lock in higher yields. We believe this strategy helped insulate the funds from the depressed rates typical of demand notes in the month of January. During the first half of the year, we shortened the funds' maturities, taking advantage of the rising rate environment. This strategy enabled us to produce better results by investing in new securities with higher yields. We then began extending the funds' DWAMs in June to take advantage of new annual note issuance. For the rest of the year, DWAM remained relatively longer, allowing the funds to capitalize on the continued decline in short-term municipal yields. Going forward, we anticipate adjusting the funds' DWAMs to accommodate both seasonal cash outflows, as well as to capture any opportunities to purchase attractively priced short-term municipal securities. Q. WHAT IS YOUR VIEW OF THE ECONOMIC CLIMATE IN CALIFORNIA? A. California continues to enjoy a sustained economic recovery with employment and income growth continuing to exceed expectations. As in prior years, California's non-farm employment gain of 3.6% during 2000 continued to surpass the national growth rate. Looking forward, it is anticipated that California will see continued moderate growth of 2.6% and 2.4% in 2001 and 2002 respectively. It is also believed that California should also continue to benefit from economic vibrancy in Asia and from strong growth in exports to Mexico, Europe, Canada and the Middle East. However, this growth may be 17 offset by increased costs associated with the electric power shortages in the state as well as slowdowns in the economy in general. Continued economic improvement has allowed California to accumulate budget reserves and to ease some of the spending restrictions imposed during the last recession. Specifically, exceptional revenue growth allowed the state to end its June 30, 2000 fiscal year with budget reserves exceeding $7 billion, well over levels forecast at mid-year. In addition, the 2001 fiscal budget was adopted on time for only the second time in many years. Despite planned increased spending on key initiatives, such as education, transportation, health and human services during 2001, reserves are still estimated to end this year near a healthy $5.8 billion. However, given the state's increasing dependence on income tax revenues, including capital gains and stock options, revenues could fluctuate even more in the future. Therefore, the state will continue to need to monitor its budget and take corrective action as necessary. California's credit ratings were upgraded during 2000 by Moody's Investor Service and Standard & Poor's Corporation due to the state's continued economic strength and improved financial position. The state's ratings are currently Aa2 from Moody's Investor Service, AA from Standard & Poor's Corporation, and AA from Fitch, Inc., three well-known rating agencies. However, on January 22, 2001 Standard & Poor's Corporation placed the state's ratings on CreditWatch with negative implications due to uncertainties surrounding the ability of the state to fashion a long term solution to its power supply crisis and the ensuing financial effect. Nevertheless, based on the current financial strengths of the state as discussed previously, we are currently satisfied that the California securities held by the funds represent minimal credit risk and we will as always, continue to monitor the state's economic and financial situation closely. Q. WHAT IS YOUR VIEW OF THE ECONOMIC CLIMATE IN NEW YORK? A. New York's satisfactory credit quality is supported by the state's diverse economic base and by New York City's central role in international finance, tourism and other service-related businesses. The 2.6% job growth rate for calendar 1999 was the highest level in a decade and was well above the projected level of 1.5%. Preliminary indications for calendar 2000 reflect a 2.1% increase in jobs, the second highest level in a decade. The strong job growth rate led to a 5.1% increase in personal income during 1999 and is expected to generate an additional 4.9% in 2000. New York continues to face the challenge of resolving long-standing general fund imbalances, in spite of budgetary surpluses in seven of the last eight years. The state ended its March 30, 2000 fiscal year with a general fund surplus of approximately $1.2 billion. Most of this surplus has already been designated for future economic uncertainties and to offset tax cuts enacted in recent years. The state's current economic projections are reasonable and in line with those of independent institutions; however, projections are also predicated on the continued strength within the financial services sector. This reliance on a single 18 sector may be a weakness unless the financial services sector continues to produce the outstanding results of the last four years. We are satisfied that the New York securities held by the funds represent minimal credit risk and we will continue to monitor the state's economic situation closely. New York's current credit ratings are A2 from Moody's Investor Service, AA from Standard & Poor's Corporation (an upgrade from A+ in December, 2000 due to the state's strong financial position, continued economic growth and enacted debt reform legislation) and A+ from Fitch, Inc., three well-known rating agencies. Q. WHAT IS YOUR VIEW OF THE ECONOMIC CLIMATE IN NEW JERSEY? A. New Jersey's above average credit quality derives from its diversified economy, high personal income levels (second only to Connecticut's) and strong control over the state's finances. Along with most of the Northeast, New Jersey was severely impacted by the recession of the early 1990s. While overall recovery started off slowly, increased job growth over the last three years has resulted in a rate of total employment that now exceeds pre-recession levels. Over the last few years, increasing tax revenues, use of non-recurring financial resources and spending controls have generated excess revenues. As a result, the state has accumulated a financial cushion of approximately 5.5% of its annual expenditures as of the end of fiscal 2000. The state's fiscal 2001 budget generally follows the track of prior years with no new taxes and a focus on educational and environmental spending. Also as in prior years, it is anticipated that increased revenues may partially offset higher spending levels. Therefore, while the state may see higher revenues over the next twelve months, it may not be able to make a significant improvement in its general fund reserves. The state's current economic projections are reasonable and in line with those of independent institutions; however, projections are also predicated on the continued strength within the financial services sector. This reliance on a single sector may be a weakness unless the financial services sector continues to produce the outstanding results of the last four years. We are satisfied that the New Jersey securities held by the funds represent minimal credit risk and we will continue to monitor the state's economic situation closely. New Jersey's current credit ratings are Aa1 from Moody's Investor Service, AA+ from Standard & Poor's Corporation and AA+ from Fitch, Inc., three well-known rating agencies. Q. WHAT IS YOUR VIEW OF THE ECONOMIC CLIMATE IN PENNSYLVANIA? A. Pennsylvania's above average credit quality is derived from the state's conservative financial management, improving job growth, economic diversification and moderate debt levels. Just like much of the northeast region, Pennsylvania was severely impacted by the recession of the early 1990s. Recovery came slowly, as evidenced by annual increases in non-farm payroll that were less than half the national rate through 1996. However, during the period between 1994 and 1999, the state created 385,000 jobs, becoming one of the nation's leading job creators. Economic expansion is anticipated to 19 continue as the state strongly pursues economic development projects. Over the past five fiscal years, Pennsylvania has generated substantial operating surpluses that have allowed the state to make contributions to its Rainy Day Fund. The Rainy Day Fund now totals about $1.1 billion and represents approximately 5.4% of fiscal year 2001 estimated revenues. The state's 2001 budget was adopted prior to the start of the new fiscal year on July 1 and generally follows the governor's proposal of additional tax relief for both corporations and individuals and an expected use of most of the accumulated General Fund surplus. Given the state's historically conservative revenue growth projections, the state is likely to draw on only a portion of its reserves in the 2001 fiscal year. We are satisfied that the Pennsylvania securities held by the funds represent minimal credit risk and we will continue to monitor the state's economic situation closely. Pennsylvania's current credit ratings are Aa2 from Moody's Investors Service (an upgrade from Aa3 in October 2000 due to, among other things, the state's established record of conservative financial management and its moderate and well-controlled debt position), AA from Standard & Poor's Corporation and AA from Fitch, Inc., three well-known rating agencies. Q. WHAT IS YOUR VIEW OF THE ECONOMIC CLIMATE IN FLORIDA? A. Florida is the fourth largest state in the nation in terms of population. The state continues to diversify its economy primarily among the trade, services, finance and export sectors, thus greatly reducing its dependence on agriculture and tourism. This continued diversification, combined with moderate debt levels and successful financial operations, has helped Florida maintain above average credit quality. In addition, the state has successfully met the challenge of funding its growth while maintaining a balanced budget, even during periods of economic weakness. Due to its dependence on sales tax revenues, the state maintains a Budget Stabilization Fund (the Fund) into which revenues in excess of the budget are deposited to provide a financial cushion during periods of slower economic cycles. As of the end of the state's 2000 fiscal year, the Fund represents about 5% of general fund revenues, a substantial cushion. We are satisfied that the Florida securities held by the funds represent minimal credit risk and we will continue to monitor the state's economic situation closely. Florida's current credit ratings are Aa2 from Moody's Investor Service, AA+ from Standard & Poor's Corporation and AA from Fitch, Inc., three well-known rating agencies. 20 GLOSSARY OF TERMSALTERNATIVE MINIMUM TAX (AMT)--A federal income tax designed to limit the extent to which high-income taxpayers (including individuals, estates, trusts and corporations) can benefit from certain deductions and exemptions. For example, some types of income that are exempt from regular federal income tax are not exempt from the AMT. COMMERCIAL PAPER--Short-term obligations issued by banks, corporations and other borrowers. CREDIT ENHANCEMENTS--A bank letter of credit, purchase agreement, insurance, line of credit or other instrument that provides an additional level of financial strength for debt securities to supplement the creditworthiness of the issuer. DOLLAR-WEIGHTED AVERAGE MATURITY (DWAM)--A measure of the average maturity of a mutual fund's entire portfolio, weighted by the values of its individual holdings. FEDERAL FUNDS RATE--A key interest rate charged by banks when lending money to other banks overnight. FEDERAL RESERVE--The central bank of the United States, which establishes policies on bank reserves and regulations, determines the discount rate and the federal funds rate, and tightens or loosens the availability of credit. FIRST-TIER SECURITY--Generally, a security rated in the highest credit-rating category by a requisite number of nationally recognized statistical rating organizations, such as Moody's, Standard &Poor's(R), or Fitch. MATURITY--The length of time remaining until the issuer of a debt security must repay the principal amount. REAL GDP--The national gross domestic product (GDP) is the total market value of all goods and services produced in the United States over a specific period of time adjusted for the rate of inflation to allow meaningful year-to-year comparisons. YIELD--The actual annualized income earned on an investment over a stated period of time (assumed to be generated over a one-year period). An EFFECTIVE YIELD assumes that the income earned is reinvested. 21 PORTFOLIO HIGHLIGHTS SCHWAB MUNICIPAL MONEY FUND AVERAGE YIELDS FOR PERIODS ENDED 12/31/00 1
SWEEP VALUE ADVANTAGE SHARES SHARES - --------------------------------------------------------------------------------------- Last seven days 4.01% 4.22% - --------------------------------------------------------------------------------------- Last three months 3.70% 3.91% - --------------------------------------------------------------------------------------- Last 12 months 3.47% 3.68% - ---------------------------------------------------------------------------------------
MATURITY SCHEDULE PERCENTAGE OF TOTAL INVESTMENTS MATURITY RANGE 3/31/00 6/30/00 9/30/00 12/31/00 - ------------------------------------------------------------------------------------------------------------ 0-15 days 70.7% 77.6% 76.6% 73.7% - ------------------------------------------------------------------------------------------------------------ 16-30 days 1.9% 0.8% 2.8% 1.9% - ------------------------------------------------------------------------------------------------------------ 31-60 days 4.9% 3.3% 1.2% 5.6% - ------------------------------------------------------------------------------------------------------------ 61-90 days 6.0% 3.3% 0.8% 1.0% - ------------------------------------------------------------------------------------------------------------ 91-120 days 4.1% 3.3% 1.4% 2.4% - ------------------------------------------------------------------------------------------------------------ More than 120 days 12.4% 11.7% 17.2% 15.4% - ------------------------------------------------------------------------------------------------------------ Weighted average 41 days 45 days 53 days 42 days - ------------------------------------------------------------------------------------------------------------ 1 A portion of the fund's expenses was reduced during the periods. Had these expenses not been reduced, yields would have been lower.
22 SCHWAB CALIFORNIA MUNICIPAL MONEY FUND AVERAGE YIELDS FOR PERIODS ENDED 12/31/00 1
SWEEP VALUE ADVANTAGE SHARES SHARES - ------------------------------------------------------------------------------------ Last seven days 3.46% 3.66% - ------------------------------------------------------------------------------------ Last three months 3.21% 3.41% - ------------------------------------------------------------------------------------ Last 12 months 2.98% 3.18% - ------------------------------------------------------------------------------------
MATURITY SCHEDULE PERCENTAGE OF TOTAL INVESTMENTS MATURITY RANGE 3/31/00 6/30/00 9/30/00 12/31/00 - ----------------------------------------------------------------------------------------------------------- 0-15 days 62.9% 59.9% 59.4% 60.6% - ----------------------------------------------------------------------------------------------------------- 16-30 days 1.1% 6.4% 3.9% 2.5% - ----------------------------------------------------------------------------------------------------------- 31-60 days 6.1% 7.9% 7.5% 2.9% - ----------------------------------------------------------------------------------------------------------- 61-90 days 2.7% 6.1% 8.2% 14.3% - ----------------------------------------------------------------------------------------------------------- 91-120 days 16.6% 4.9% 2.8% 1.1% - ----------------------------------------------------------------------------------------------------------- More than 120 days 10.6% 14.8% 18.2% 18.6% - ----------------------------------------------------------------------------------------------------------- Weighted average 44 days 66 days 64 days 55 days - ----------------------------------------------------------------------------------------------------------- 1 A portion of the fund's expenses was reduced during the periods. Had these expenses not been reduced, yields would have been lower.
23 PORTFOLIO HIGHLIGHTS SCHWAB NEW YORK MUNICIPAL MONEY FUND AVERAGE YIELDS FOR PERIODS ENDED 12/31/00 1
SWEEP VALUE ADVANTAGE SHARES SHARES - ----------------------------------------------------------------------------------------- Last seven days 3.81% 4.05% - ----------------------------------------------------------------------------------------- Last three months 3.54% 3.78% - ----------------------------------------------------------------------------------------- Last 12 months 3.34% 3.58% - -----------------------------------------------------------------------------------------
MATURITY SCHEDULE PERCENTAGE OF TOTAL INVESTMENTS MATURITY RANGE 3/31/00 6/30/00 9/30/00 12/31/00 - ---------------------------------------------------------------------------------------------------------- 0-15 days 53.8% 55.9% 70.0% 64.1% - ---------------------------------------------------------------------------------------------------------- 16-30 days -- 4.0% 2.2% 2.7% - ---------------------------------------------------------------------------------------------------------- 31-60 days 7.5% 16.1% 7.9% 6.4% - ---------------------------------------------------------------------------------------------------------- 61-90 days 12.8% 1.4% 3.0% 1.7% - ---------------------------------------------------------------------------------------------------------- 91-120 days 8.5% 2.8% 3.3% 8.4% - ---------------------------------------------------------------------------------------------------------- More than 120 days 17.4% 19.8% 13.6% 16.7% - ---------------------------------------------------------------------------------------------------------- Weighted average 67 days 58 days 42 days 52 days - ---------------------------------------------------------------------------------------------------------- 1 A portion of the fund's expenses was reduced during the periods. Had these expenses not been reduced, yields would have been lower.
24 SCHWAB NEW JERSEY MUNICIPAL MONEY FUND AVERAGE YIELDS FOR PERIODS ENDED 12/31/00 1 SWEEP SHARES - ------------------------------------------------------------------ Last seven days 3.77% - ------------------------------------------------------------------ Last three months 3.52% - ------------------------------------------------------------------ Last 12 months 3.33% - ------------------------------------------------------------------
MATURITY SCHEDULE PERCENTAGE OF TOTAL INVESTMENTS MATURITY RANGE 3/31/00 6/30/00 9/30/00 12/31/00 - ---------------------------------------------------------------------------------------------------------- 0-15 days 64.2% 69.6% 65.0% 60.8% - ---------------------------------------------------------------------------------------------------------- 16-30 days 2.2% 2.9% 4.1% 0.9% - ---------------------------------------------------------------------------------------------------------- 31-60 days 1.6% 3.3% 4.1% -- - ---------------------------------------------------------------------------------------------------------- 61-90 days 3.9% 8.3% 1.2% 12.0% - ---------------------------------------------------------------------------------------------------------- 91-120 days 4.4% 3.3% 4.7% 2.5% - ---------------------------------------------------------------------------------------------------------- More than 120 days 23.7% 12.6% 20.9% 23.8% - ---------------------------------------------------------------------------------------------------------- Weighted average 70 days 46 days 67 days 71 days - ---------------------------------------------------------------------------------------------------------- 1 A portion of the fund's expenses was reduced during the periods. Had these expenses not been reduced, yields would have been lower.
25 PORTFOLIO HIGHLIGHTS SCHWAB PENNSYLVANIA MUNICIPAL MONEY FUND AVERAGE YIELDS FOR PERIODS ENDED 12/31/00 1 SWEEP SHARES - --------------------------------------------------------------------------- Last seven days 3.96% - --------------------------------------------------------------------------- Last three months 3.70% - --------------------------------------------------------------------------- Last 12 months 3.51% - ---------------------------------------------------------------------------
MATURITY SCHEDULE PERCENTAGE OF TOTAL INVESTMENTS MATURITY RANGE 3/31/00 6/30/00 9/30/00 12/31/00 - ---------------------------------------------------------------------------------------------------------- 0-15 days 76.4% 67.6% 69.3% 78.8% - ---------------------------------------------------------------------------------------------------------- 16-30 days 0.5% 5.4% 2.8% 4.3% - ---------------------------------------------------------------------------------------------------------- 31-60 days 2.2% 4.6% 1.6% 1.3% - ---------------------------------------------------------------------------------------------------------- 61-90 days 4.6% 1.6% 2.6% 2.7% - ---------------------------------------------------------------------------------------------------------- 91-120 days 2.0% 3.6% 15.0% -- - ---------------------------------------------------------------------------------------------------------- More than 120 days 14.3% 17.2% 8.7% 12.9% - ---------------------------------------------------------------------------------------------------------- Weighted average 48 days 46 days 44 days 37 days - ---------------------------------------------------------------------------------------------------------- 1 A portion of the fund's expenses was reduced during the periods. Had these expenses not been reduced, yields would have been lower.
26 SCHWAB FLORIDA MUNICIPAL MONEY FUND AVERAGE YIELDS FOR PERIODS ENDED 12/31/00 1 SWEEP SHARES - --------------------------------------------------------------------------- Last seven days 4.00% - --------------------------------------------------------------------------- Last three months 3.76% - --------------------------------------------------------------------------- Last 12 months 3.56% - ---------------------------------------------------------------------------
MATURITY SCHEDULE PERCENTAGE OF TOTAL INVESTMENTS MATURITY RANGE 3/31/00 6/30/00 9/30/00 12/31/00 - ---------------------------------------------------------------------------------------------------------- 0-15 days 67.9% 76.6% 75.5% 83.6% - ---------------------------------------------------------------------------------------------------------- 16-30 days -- -- -- 0.3% - ---------------------------------------------------------------------------------------------------------- 31-60 days 3.7% 5.8% -- 0.8% - ---------------------------------------------------------------------------------------------------------- 61-90 days 5.9% 4.4% 2.6% 0.4% - ---------------------------------------------------------------------------------------------------------- 91-120 days 8.2% 3.8% 5.0% 0.6% - ---------------------------------------------------------------------------------------------------------- 91-120 days 14.3% 9.4% 16.9% 14.3% - ---------------------------------------------------------------------------------------------------------- Weighted average 44 days 41 days 57 days 35 days - ---------------------------------------------------------------------------------------------------------- 1 A portion of the fund's expenses was reduced during the periods. Had these expenses not been reduced, yields would have been lower.
27 SCHWAB MUNICIPAL MONEY FUND SCHEDULE OF INVESTMENTS (in thousands) December 31, 2000 Par Value -------- ---------- VARIABLE RATE OBLIGATIONS -- 57.7% (b)(f) ALABAMA-- 1.1% Alabama State IDA RB (Cash Value Project) 5.00%, 01/07/01 $ 2,950 $ 2,950 Alabama State IDA RB (Scientific Project) 5.30%, 01/07/01 2,970 2,970 Bessemer, Alabama Medical Clinic Board RB (Lloyd Nolan Foundation) Series 2000A 4.90%, 01/07/01 12,000 12,000 Birmingham, Alabama GO Series 1992A 4.85%, 01/07/01 5,600 5,600 Birmingham, Alabama Unlimited GO Refunding Bonds Series 1995 4.85%, 01/07/01 3,800 3,800 Citronelle, Alabama IDB Pollution Control Revenue Refunding Bonds (AKZO Chemicals, Inc. Project) 5.05%, 01/07/01 1,100 1,100 Daphne, Alabama Utilities Board of Water, Gas, & Sewer Revenue Refunding Bonds 4.91%, 01/07/01 9,705 9,705 Decatur, Alabama IDB Solid Waste Disposal RB (Trico Steel Project) Series 1997 5.00%, 01/07/01 5,700 5,700 Dothan, Alabama IDB RB (Baxley Blowpipe Project) 5.05%, 01/07/01 600 600 Fort Payne, Alabama IDA Base Tax Exempt Adjustable Mode IDRB (Charleston Hosiery Project) Series 1997 5.05%, 01/07/01 1,800 1,800 Headland, Alabama IDB RB (Golden Peanut Project) 5.15%, 01/07/01 4,000 4,000 Indian Springs Village, Alabama Additional Building Authority RB (J. Bruno Academy Project) 4.95%, 01/07/01 1,545 1,545 Mobile County, Alabama IDB Pollution Control Revenue Refunding Bonds (Ultraform Co. Project) Series 1995A 4.85%, 01/07/01 7,480 7,480 Par Value -------- ---------- Mobile County, Alabama IDB RB (Ultraform Co. Project) Series 1995B 4.85%, 01/07/01 $ 1,000 $ 1,000 Scottsboro, Alabama GO 4.90%, 01/07/01 4,465 4,465 Stevenson, Alabama IDB Environmental Improvement RB (Mead Corp. Project) 5.05%, 01/07/01 16,800 16,800 Stevenson, Alabama IDB Environmental Improvement RB (Mead Corp. Project) Series 1998B 5.10%, 01/07/01 25,000 25,000 Tuscaloosa, Alabama IDB IDRB (Field Container Corp.) 4.85%, 01/07/01 1,100 1,100 Tuscaloosa, Alabama IDRB (Knight Special Project) 5.05%, 01/07/01 1,135 1,135 ---------- 108,750 ---------- ARIZONA -- 1.0% Arizona Educational Loan Marketing Corp. RB Series 1990A 4.90%, 01/07/01 12,805 12,805 Arizona Health Facilities Authority Hospital System RB (Arizona Volunteer Hospital Federation) Series 1985A 4.80%, 01/07/01 11,090 11,090 Arizona Health Facilities Authority Hospital System RB (Arizona Volunteer Hospital Federation) Series 1985B 4.80%, 01/07/01 8,945 8,945 Arizona Health Facilities Authority Hospital System RB (Northern Arizona Health Care) Series 1996B 4.80%, 01/07/01 26,200 26,200 Chandler, Arizona IDA IDRB (South Bay Circuits Project) Series 1999A 5.15%, 01/07/01 2,000 2,000 Coconino County, Arizona Pollution Control RB (Arizona Public Services Co. Project) 4.95%, 01/07/01 15,000 15,000 Phoenix, Arizona Civic Improvement Excise Tax RB (Airport Improvements) 4.95%, 01/07/01 1,000 1,000 Phoenix, Arizona IDA RB (Vaw America Inc. Project) 5.20%, 01/07/01 3,000 3,000 28 Par Value -------- ---------- Yavapai County, Arizona IDRB (Yavapai Regional Medical Center) 4.80%, 01/07/01 $ 15,050 $ 15,050 Yuma County, Arizona IDA M/F Housing RB (El Encanto Apartments) Series 1988A 4.81%, 01/07/01 2,915 2,915 Yuma County, Arizona IDA RB (Meadowcraft, Inc. Project) Series 1997 5.20%, 01/07/01 1,000 1,000 ---------- 99,005 ---------- ARKANSAS -- 0.3% Arkansas Development Finance Authority IDRB (C&C Holding Co. Project) Series 1998 5.20%, 01/07/01 1,375 1,375 Fayetteville, Arkansas Public Facilities Board RB 5.00%, 01/07/01 14,885 14,885 Independance County, Arkansas IDRB (Townsends of Arkansas, Inc. Project) 5.05%, 01/07/01 9,000 9,000 Independence County, Arkansas IDRB (Ideal Baking Project) 5.20%, 01/07/01 4,300 4,300 ---------- 29,560 ---------- CALIFORNIA -- 0.7% California Higher Education Loan Authority Student Loan Revenue Refunding Bonds Series 1992E-1 4.75%, 01/07/01 23,000 23,000 California Pollution Control Financing Authority RB (Shell Oil Company Project) Series 1991B 3.70%, 01/01/01 2,300 2,300 California Pollution Control Financing Authority RB (Pacific Gas & Electric Co. Project) Series A 7.00%, 01/07/01 37,900 37,900 Irvine Ranch, California Improvement Bond Act 1915 RB (Assessment District No. 93-14) 3.75%, 01/01/01 1,200 1,200 ---------- 64,400 ---------- Par Value -------- ---------- COLORADO -- 2.9% Adams County, Colorado Economic Development Authority Tax Increment RB (Westminster Plaza Urban Renewal Project) 5.15%, 01/07/01 $ 6,460 $ 6,460 Adams County, Colorado IDRB (City View Park Project) Series 1985 4.95%, 01/07/01 5,700 5,700 Arapahoe County, Colorado Industrial Development Revenue Refunding Bonds (Denver Jet Center Project) Series 1997 4.50%, 01/01/01 1,000 1,000 Central City, Colorado M/F Housing RB (Gold Mountain Apartment Project) 5.10%, 01/07/01 8,250 8,250 Colorado Health Facilities Authority RB (National Benevolent Association Project) 4.90%, 01/07/01 1,100 1,100 Colorado HFA Economic Development RB (Inovonics Enterprises Project) 5.10%, 01/07/01 3,400 3,400 Colorado HFA Economic Development RB (Pemracs Limited, LLP Project) Series 2000A 5.15%, 01/07/01 3,785 3,785 Colorado Student Obligation Bond Authority Student Loan RB (Colorado University) Series 1990A 4.90%, 01/07/01 14,400 14,400 Colorado Student Obligation Bond Authority Student Loan RB Series 1989A 4.90%, 01/07/01 41,800 41,800 Colorado Student Obligation Bond Authority Student Loan RB Series 1999A-2 4.90%, 01/07/01 16,000 16,000 Colorado Student Obligation Bond Authority Student Loan RB Series 1999A-3 4.90%, 01/07/01 15,000 15,000 Denver, Colorado City & County Airport System RB Series 1992D 4.90%, 01/07/01 48,725 48,725 Denver, Colorado City & County Airport System RB Series 1992F 4.90%, 01/07/01 15,775 15,775 29 SCHWAB MUNICIPAL MONEY FUND SCHEDULE OF INVESTMENTS (in thousands) (continued) December 31, 2000 Par Value -------- ---------- Denver, Colorado City & County Airport System RB Series 1992G 4.90%, 01/07/01 $ 19,700 $ 19,700 Denver, Colorado City & County Airport System Revenue Refunding Bonds Series 2000B 5.10%, 01/07/01 10,000 10,000 Denver, Colorado City & County Airport System Revenue Refunding Bonds Series 2000C 4.90%, 01/07/01 35,000 35,000 El Paso County, Colorado RB (Colorado Springs World Arena) 5.00%, 01/07/01 1,350 1,350 Lowry, Colorado Economic Redevelopment Authority RB 4.80%, 01/07/01 10,000 10,000 Lowry, Colorado Economic Redevelopment Authority RB Series 1998A 4.80%, 01/07/01 10,955 10,955 Smith Creek, Colorado Metropolitan District RB Series 1997 5.00%, 01/07/01 2,250 2,250 Wheatridge County, Colorado IDRB (Leaf Inc. Project) 5.05%, 01/07/01 7,000 7,000 ---------- 277,650 ---------- DELAWARE -- 0.1% Delaware Valley, Pennsylvania Regional Finance Authority Local Government RB Series 1986 4.75%, 01/07/01 2,900 2,900 Sussex County, Delaware IDRB (Perdue Agri-Recycle, LLC Project) 5.10%, 01/07/01 5,300 5,300 Sussex County, Delaware RB (Baywood, LLC Project) Series 1997A 5.05%, 01/07/01 2,400 2,400 ---------- 10,600 ---------- DISTRICT OF COLUMBIA-- 0.5% District of Columbia RB (Arnold & Porter Project) 5.10%, 01/07/01 3,600 3,600 Par Value -------- ---------- District of Columbia RB (George Washington University Project) Series 2000B 4.85%, 01/07/01 $ 40,565 $ 40,565 ---------- 44,165 ---------- FLORIDA -- 1.6% Citrus Park Community Development District, Florida Capital Improvement Bonds Series 1996 4.75%, 01/07/01 670 670 Dade County, Florida Health Facilities Authority Hospital RB (Miami Children's Hospital Project) 4.45%, 01/07/01 2,000 2,000 Dade County, Florida IDA RB (June Leasing Corp. Project) Series 1995 4.60%, 01/07/01 800 800 Florida Municipal Power Agency Revenue Refunding Bonds (Stanton II Project) Series 1997 4.75%, 01/07/01 2,000 2,000 Florida State Finance Authority (Florida Hospital Association - Capital Projects Loan Program) Series 1998A 4.50%, 01/07/01 13,465 13,465 Florida State Municipal Power Agency Revenue Refunding Bonds (Stanton Project) Series 1997 4.50%, 01/07/01 6,200 6,200 Gulf Breeze, Florida RB (Local Government Loan Program) Series 1985B 4.50%, 01/07/01 12,320 12,320 Halifax, Florida Hospital Medical Center Health Care Facilities RB (Health Care Plan, Inc. Project) 4.50%, 01/07/01 400 400 Jacksonville, Florida Health Facilities Authority RB (River Garden Project) Series 1994 4.45%, 01/07/01 3,715 3,715 Jacksonville, Florida Industrial Development Revenue Refunding Bonds (Pavilion Associates Project) 4.50%, 01/07/01 300 300 Jacksonville, Florida RB (Capital Project) 4.65%, 01/07/01 7,000 7,000 30 Par Value -------- ---------- Lake Shore, Florida Hospital Authority Health Facilities RB (Lakeshore Hospital Project) Series 1991 5.00%, 01/07/01 $ 3,500 $ 3,500 Miami-Dade County, Florida IDA IDRB (Airis Miami LLC Project) Series 1999A 4.75%, 01/07/01 61,800 61,800 Miami-Dade County, Florida IDA IDRB (Arctic Partners Project) 5.15%, 01/07/01 680 680 Miami-Dade County, Florida IDRB (Airbus Service Co. Project) Series 1998A 4.55%, 01/07/01 10 10 Palm Beach County, Florida HDA M/F Revenue Refunding Bonds (Spinnaker Landing Project) 4.90%, 01/07/01 3,045 3,045 Palm Beach County, Florida RB (Norton Gallery Art School Project) Series 1995 4.90%, 01/07/01 200 200 Pasco County, Florida School Board COP 4.80%, 01/07/01 11,670 11,670 Polk County, Florida IDA RB (Young Florida Project) Series 1996 4.55%, 01/07/01 260 260 Suwannee County, Florida Health Facilities Authority RB (Shands Teaching Hospital Clinic Project) Series 1996 4.75%, 01/07/01 4,500 4,500 Tallahassee & Leon County, Florida Civic Center Authority Capital Improvement RB Series 1998A 5.00%, 01/07/01 4,690 4,690 Tampa, Florida Health Care Facilities RB (Lifelink Foundation Inc., Project) 5.00%, 01/07/01 5,400 5,400 Tampa, Florida Occupational License Tax RB Series 1996A 4.75%, 01/07/01 2,140 2,140 Volusia County, Florida Health Finance Authority RB (South West Volusia Health Project) Series 1994A 4.40%, 01/07/01 500 500 Par Value -------- ---------- West Orange, Florida Healthcare District RB Series 1999B 4.70%, 01/07/01 $ 7,400 $ 7,400 ---------- 154,665 ---------- GEORGIA -- 5.1% Athens-Clarke, Jackson & Morgan County, Georgia IDRB (Mayfield Dairy Farms, Inc. Project) 5.05%, 01/07/01 7,350 7,350 Atlanta, Georgia Urban Residential Finance Authority M/F Housing RB (Brentwood Creek Apartments Project) 5.10%, 01/07/01 4,720 4,720 Atlanta, Georgia Urban Residential Finance Authority M/F Housing RB (Brentwood Meadows Apartments Project) 5.10%, 01/07/01 3,065 3,065 Atlanta, Georgia Urban Residential Finance Authority M/F Housing RB (Brentwood Village Apartments Project) 5.10%, 01/07/01 6,195 6,195 Bartow County, Georgia IDRB (Bartow Paving Co. Project) 5.05%, 01/07/01 2,800 2,800 Bartow County, Georgia IDRB (Matthew Contracting Project) 5.15%, 01/07/01 3,200 3,200 Cartersville, Georgia Development Authority IDRB (Cartersville Facilities Project) 5.00%, 01/07/01 2,600 2,600 Cherokee County, Georgia IDRB (Universal Alloy) 5.05%, 01/07/01 3,700 3,700 Clayton County, Georgia Development Authority Special Facilities RB (Delta Air Lines) Series 2000B 4.80%, 01/07/01 109,055 109,055 Clayton County, Georgia Development Authority Special Facilities RB (Delta Air Lines) Series 2000C 4.95%, 01/07/01 45,100 45,100 Clayton County, Georgia IDRB (Wilson Holdings Project) 5.10%, 01/07/01 1,200 1,200 31 SCHWAB MUNICIPAL MONEY FUND SCHEDULE OF INVESTMENTS (in thousands) (continued) December 31, 2000 Par Value -------- ---------- Cobb County, Georgia HFA M/F Housing RB (Walton Green Project) 5.05%, 01/07/01 $ 13,500 $ 13,500 Cobb County, Georgia HFA M/F Housing Revenue Refunding Bonds (Walton Park Apartments Project) 5.00%, 01/07/01 21,100 21,100 Columbus, Georgia Development Authority RB (Foundation Property's, Inc. Project) Series 2000 5.15%, 01/07/01 10,000 10,000 Crisp County, Cordele, Georgia IDA IDRB (Georgia Ductile Project) 5.12%, 01/07/01 15,000 15,000 Crisp County, Georgia Solid Waste Management Authority RB 5.84%, 01/07/01 19,600 19,600 Dekalb County, Georgia Development Authority IDRB (Arbor Montessori School Project) 5.00%, 01/07/01 1,100 1,100 Dekalb County, Georgia Development Authority IDRB (Siemens Energy, Inc. Project) 5.00%, 01/07/01 7,500 7,500 Dekalb County, Georgia Development Authority IDRB (Truman Properties Ltd. Liability Corp. Project) 5.05%, 01/07/01 2,400 2,400 Dekalb County, Georgia HFA M/F Housing RB (Wood Hills Apartment Project) 4.90%, 01/07/01 17,350 17,350 Douglas County, Georgia IDA RB (Blue Circle Project) 5.15%, 01/07/01 3,800 3,800 Douglas County, Georgia IDA Revenue Refunding Bonds (Mima, Inc. Project) 5.05%, 01/07/01 4,300 4,300 Fulton County, Georgia Development Authority RB (Atlanta International School Project) 5.00%, 01/07/01 2,900 2,900 Fulton County, Georgia Development Authority RB (Woodruff Arts Center Project) 4.95%, 01/07/01 10,000 10,000 Par Value -------- ---------- Fulton County, Georgia Residential Care Facilities Revenue Refunding Bonds (Lenbrook Square Foundation) 5.00%, 01/07/01 $ 2,400 $ 2,400 Gwinnett County, Georgia HFA M/F Housing RB 5.00%, 01/07/01 5,000 5,000 Hart County, Georgia Industrial Building Authority IDRB (Awh Corp. Project) 5.05%, 01/07/01 6,000 6,000 Hart County, Georgia Industrial Building Authority IDRB (Dundee Mills Project) 5.10%, 01/07/01 3,875 3,875 Houston County, Georgia Development Authority IDRB (Douglas Asphalt County Project) 5.10%, 01/07/01 3,000 3,000 Jefferson County, Georgia Development Authority IDRB (Grove River Mills Project) Series 1997 5.05%, 01/07/01 2,900 2,900 Lafayette, Georgia Development Authority RB (Dixie Group Project) 5.10%, 01/07/01 4,000 4,000 Laurens County, Georgia Development Authority Solid Waste Disposal RB (Southeast Paper Manufacturing Co. Project) 5.05%, 01/07/01 51,000 51,000 Lowndes County, Georgia Development Authority M/F Housing RB (FMPH Valdosta, Limited Partnership Project) 5.10%, 01/07/01 5,045 5,045 Macon-Bibb County, Georgia Hospital Authority RB (The Medical Center of Central Georgia Project) Series 1998 5.00%, 01/07/01 4,000 4,000 Miller County, Georgia Development Authority IDRB (Birdsong Corp. Project) RB 5.10%, 01/07/01 3,000 3,000 Private Colleges and Universities Facitlities Authority, Georgia RB (Emory University) Series 2000B 4.60%, 01/07/01 6,115 6,115 Private Colleges and Universities Facitlities Authority, Georgia RB (Emory University) Series 2000C 4.60%, 01/07/01 10,000 10,000 32 Par Value -------- ---------- Richmond County, Georgia Development Authority Solid Waste Disposal RB (South Evergreen Nylon Recycling Project) Series 1999 4.90%, 01/07/01 $ 5,900 $ 5,900 Roswell, Georgia HFA M/F Housing RB (Gables Realty Wood Crossing Project) 4.95%, 01/07/01 11,650 11,650 Savannah, Georgia Economic Development Authority RB (Georgia Kaolin, Inc.) 5.15%, 01/07/01 11,000 11,000 Savannah, Georgia Economic Development Authority RB (Home Depot Project) Series 1995B 5.05%, 01/07/01 5,000 5,000 Savannah, Georgia HFA M/F Housing RB (Chatham Gardens Project) Series 1997 5.10%, 01/07/01 2,995 2,995 Summerville, Georgia Development Authority RB (Image Industry Project) Series 1997 5.03%, 01/07/01 11,000 11,000 Thomaston-Upson County, Georgia IDA IDRB (Southern Mills Project) Series 1999 5.10%, 01/07/01 4,940 4,940 Thomasville, Georgia Payroll Development Authority (Brit Corp. Project) 5.15%, 01/07/01 3,600 3,600 Walton County, Georgia Development Authority RB (Tucker Door & Trim Corp. Project) 5.20%, 01/07/01 2,600 2,600 Webster County, Georgia IDA IDRB (Tolleson Lumber Co., Inc. Project) 5.05%, 01/07/01 7,200 7,200 Winder-Barrow, Georgia Industrial Building Authority IDRB (Progress Container Corp. Project) Series 2000 5.10%, 01/07/01 3,320 3,320 Worth County, Georgia IDA Revenue Refunding Bonds (Seabrook Project) Series 1996B 5.10%, 01/07/01 1,300 1,300 ---------- 494,375 ---------- Par Value -------- ---------- HAWAII -- 0.3% Hawaii Department of Budget & Finance Special Purpose Mortgage RB (Adventist Health System West) 4.85%, 01/07/01 $ 6,900 $ 6,900 Hawaii Student Loan RB (Secondary Market Services Corp.) Series 1995-II 4.75%, 01/07/01 9,000 9,000 Hawaii Student Loan RB (Secondary Market Services Corp.) Series 2000-II 4.75%, 01/07/01 8,800 8,800 ---------- 24,700 ---------- IDAHO -- 0.0% Idaho HFA Housing RB (Assisted Living Concepts Project) 5.10%, 01/07/01 815 815 ---------- ILLINOIS-- 5.2% Aurora, Illinois M/F Housing RB (Apartments at Fox VY-A) 4.85%, 01/07/01 9,445 9,445 Bartlett, Illinois M/F Housing RB (Bartlett Square Apartments) Series 1995A 4.85%, 01/07/01 3,725 3,725 Batavia, Illinois Development RB (American Industrial Technologies) 5.10%, 01/07/01 2,200 2,200 Carol Stream, Illinois M/F Housing Revenue Refunding Bonds (St. Charles Square Project) 4.95%, 01/07/01 4,415 4,415 Centralia, Illinois IDA RB (Consolidated Foods Corp. & Hollywood Brands, Inc. Project) 4.95%, 01/07/01 4,500 4,500 Chicago, Illinois Gas Supply RB (Peoples Gas Light & Coke Co. Project) Series 1993B 4.85%, 01/07/01 11,000 11,000 Chicago, Illinois Gas Supply Revenue Refunding Bond (Peoples Gas, Light & Coke Co. Project) Series 2000C 4.90%, 01/07/01 19,000 19,000 Chicago, Illinois IDRB (Morse Automotive Project) Series 1995 5.10%, 01/07/01 2,000 2,000 33 SCHWAB MUNICIPAL MONEY FUND SCHEDULE OF INVESTMENTS (in thousands) (continued) December 31, 2000 Par Value -------- ---------- Chicago, Illinois Midway Airport Special Facility RB (American Trans Air Project) 5.05%, 01/07/01 $ 5,000 $ 5,000 Chicago, Illinois O'Hare International Special Facility RB Series 2000A 5.05%, 01/07/01 37,200 37,200 Chicago, Illinois O'Hare International Airport RB (ACES General Airport Second Lien) Series B1 5.10%, 01/07/01 23,800 23,800 Chicago, Illinois O'Hare International Airport RB (ACES General Airport Second Lien) Series B2 5.10%, 01/07/01 13,800 13,800 Chicago, Illinois O'Hare International Airport Special Facility RB 4.90%, 01/07/01 22,700 22,700 Chicago, Illinois RB (Homestart Program) Series 2000A 4.90%, 01/07/01 15,000 15,000 Dupage County, Illinois RB (Benedictine University Building Project) 4.90%, 01/07/01 16,000 16,000 East Dundee, Kane & Cook Counties, Illinois IDRB (Otto Engine Project) 4.98%, 01/07/01 2,250 2,250 Elmhurst, Illinois IDRB (ELM Machining Corp. Project) 5.20%, 01/07/01 2,870 2,870 Glendale Heights, Illinois IDRB (York Corrugated Container Project) 4.85%, 01/07/01 1,400 1,400 Hampshire, Illinois IDRB (Poli-Film America Project) Series 1998A 5.20%, 01/07/01 6,100 6,100 Huntley, Illinois Special Civic Area #9 Special Tax Bond Series 1998B 4.85%, 01/07/01 8,172 8,172 Illinois Development Finance Authority (Anatol Enterprises) 5.20%, 01/07/01 3,700 3,700 Illinois Development Finance Authority (Chicago Academy of Science Project) Series 1998 4.85%, 01/07/01 5,700 5,700 Illinois Development Finance Authority (Chicago Horticultural Society Project) 4.85%, 01/07/01 20,000 20,000 Par Value -------- ---------- Illinois Development Finance Authority (Palos Common Hospital Project) Series 1998 5.00%, 01/07/01 $ 10,000 $ 10,000 Illinois Development Finance Authority (Roll Service, Inc. Project) 5.15%, 01/07/01 2,230 2,230 Illinois Development Finance Authority (Wheaton Academy Project) 4.85%, 01/07/01 8,000 8,000 Illinois Development Finance Authority IDRB (Arc Tronics, Inc. Project) 5.15%, 01/07/01 2,800 2,800 Illinois Development Finance Authority IDRB (Camcraft, Inc. Project) 5.05%, 01/07/01 2,700 2,700 Illinois Development Finance Authority IDRB (Catholic Charities) 4.85%, 01/07/01 720 720 Illinois Development Finance Authority IDRB (Chicago Corrugated Box Company) Series 6 5.20%, 01/07/01 750 750 Illinois Development Finance Authority IDRB (MCL, Inc. Project) 5.20%, 01/07/01 1,840 1,840 Illinois Development Finance Authority IDRB (Molding Project) 5.35%, 01/07/01 2,650 2,650 Illinois Development Finance Authority IDRB (Perkin Paperboard Co., LP) Series 1994 5.05%, 01/07/01 5,500 5,500 Illinois Development Finance Authority IDRB (Radiological Society Project) Series 1997 5.00%, 01/07/01 4,600 4,600 Illinois Development Finance Authority IDRB (River Graphics Corp. Project) Series 1996 5.20%, 01/07/01 3,200 3,200 Illinois Development Finance Authority IDRB (SMF, Inc. Project) Series A 5.15%, 01/07/01 1,960 1,960 Illinois Development Finance Authority RB (Catholic Charities Housing Project) Series 1993A 4.85%, 01/07/01 9,160 9,160 34 Par Value -------- ---------- Illinois Development Finance Authority RB (Chicago Academy of Science Project) 4.85%, 01/07/01 $ 4,615 $ 4,615 Illinois Development Finance Authority RB (Cloverhill Pastry Project) 5.05%, 01/07/01 4,620 4,620 Illinois Development Finance Authority RB (Korex Corp. Project) 5.00%, 01/07/01 4,000 4,000 Illinois Development Finance Authority RB (Lake Forest Academy Project) 4.85%, 01/07/01 2,000 2,000 Illinois Development Finance Authority RB (Slovak American Charitable Project) 4.85%, 01/07/01 8,200 8,200 Illinois Development Finance Authority RB (St. Ignatius College Prep Project) 4.85%, 01/07/01 2,200 2,200 Illinois Development Finance Authority RB (Variable Rest Haven Illiana Christian) 4.85%, 01/07/01 10,690 10,690 Illinois Development Finance Authority RB (Village Oak Park Residence) 4.95%, 01/07/01 2,105 2,105 Illinois Development Finance Authority Residential Rental RB (F.C. Harris Pavillion Project) Series 1994 4.80%, 01/07/01 27,510 27,510 Illinois Development Finance Authority Residential Rental RB (River Oak Project) 5.00%, 01/07/01 32,000 32,000 Illinois Development Finance Authority Revenue Refunding Bonds (Francis W. Parker Project) 4.80%, 01/07/01 2,500 2,500 Illinois Development Finance Authority Revenue Refunding Bonds (Rich Products Corp. Project) 5.10%, 01/07/01 1,525 1,525 Illinois Educational Facility Authority RB (Chicago Historical Society) 4.95%, 01/07/01 8,000 8,000 Illinois International Port District Facilities RB (Southdown, Inc. Project) 4.80%, 01/07/01 4,000 4,000 Par Value -------- ---------- Illinois Educational Facility Authority RB (Chicago Zoological Society Brookfield Zoo) Series B 4.85%, 01/07/01 $ 2,800 $ 2,800 Illinois Educational Facility Authority RB (National Louis University) Series 1999B 5.00%, 01/07/01 17,700 17,700 Illinois HDA M/F Mortgage Revenue Refunding Bond (Hyde Park Tower Apartments Project) Series 2000A 5.10%, 01/07/01 5,615 5,615 Illinois Health Facilities Authority RB (Streetville Corporation) Series A 5.00%, 01/07/01 6,000 6,000 Illinois Health Facility Authority RB (Bensenville Home Society Project) Series 1989A 4.80%, 01/07/01 2,275 2,275 Illinois Health Facility Authority RB (Ingalls Memorial Hospital) Series 1985C 5.00%, 01/07/01 1,100 1,100 Illinois Health Facility Authority RB (Washington & Jane Smith Home) Series 1991 5.00%, 01/07/01 2,800 2,800 Illinois Student Assistance Commission Student Loan RB Series 1996A 4.90%, 01/07/01 7,800 7,800 Lombard, Illinois Industrial Development Revenue Refunding Bonds (B & H Partnership Project) 5.15%, 01/07/01 1,850 1,850 Melrose Park, Illinois IDRB (Ninos Enterprises, Inc. Project) 5.15%, 01/07/01 2,900 2,900 New Lenox, Illinois IDRB (Panduit Corp. Project) 5.10%, 01/07/01 4,400 4,400 Oak Forest, Illinois Development RB (Homewood Pool-South Suburban Mayors & Managers Association Project.) 5.00%, 01/07/01 10,000 10,000 Palatine, Illinois Special Facilities Limited Obligation RB (Little City Community Development Project) 4.85%, 01/07/01 4,000 4,000 35 SCHWAB MUNICIPAL MONEY FUND SCHEDULE OF INVESTMENTS (in thousands) (continued) December 31, 2000 Par Value -------- ---------- Richton Park, Illinois IDRB (Avatar Corp. Project) 5.20%, 01/07/01 $ 1,900 $ 1,900 Rockford, Illinois IDRB (Industrial Welding Supply, Inc. Project) 5.20%, 01/07/01 2,000 2,000 Rockford, Illinois IDRB (Ring Can Corp. Project) 5.10%, 01/07/01 2,400 2,400 Tinley Park, Illinois IDA RB (Beverly Manufacturing Co. Project) Series 1997A 5.10%, 01/07/01 2,465 2,465 Tremont, Illinois IDRB (Hanna Steel Project) 4.94%, 01/07/01 9,500 9,500 Woodstock, Illinois M/F Housing RB (Prairie Trail) Series 1996A 5.10%, 01/07/01 3,425 3,425 Woodstock, Illinois M/F Housing RB (Prairie View Ltd.) 5.10%, 01/07/01 2,935 2,935 Yorkville, Illinois IDRB (F.E. Wheaton & Co. Inc. Project) Series 1996 5.20%, 01/07/01 1,370 1,370 ---------- 505,287 ---------- INDIANA -- 1.1% Crawfordsville, Indiana IDRB (National Service Industries, Inc. Project) 4.95%, 01/07/01 4,000 4,000 Elkhart County, Indiana Economic Development RB (White Plains Apartments Project) Series 1998A 4.95%, 01/07/01 2,050 2,050 Gary, Indiana Economic Development Authority Revenue Refunding Bonds (Tinplate Partnership Project) Series 1997A 5.15%, 01/07/01 2,100 2,100 Gary, Indiana Empowerment Zone RB (Chemcoaters, LLC Project) Series 2000A 5.15%, 01/07/01 6,500 6,500 Hammond, Indiana Economic Development RB (Lear Seating Corp. Project) Series 1994 4.45%, 01/07/01 9,145 9,145 Par Value -------- ---------- Indiana Development Finance Authority IDRB (Cives Corp. Project) Series 1998 5.05%, 01/07/01 $ 7,150 $ 7,150 Indiana Secondary Market Educational Loans, Inc. Student Loan RB Series 1988B 4.75%, 01/07/01 27,000 27,000 Indiana State Develpopement Finance Authority IDRB (Big Sky Park Project) 4.98%, 01/07/01 6,000 6,000 Indianapolis, Indiana Resource Recovery Bonds (Ogden Martin Systems Inc. Project) Series 1987 5.05%, 01/07/01 23,060 23,060 Miami County, Indiana Economic Development RB (Dukes Memorial Hospital Project) 4.65%, 01/07/01 5,000 5,000 St. Joseph College, Indiana Economic Development RB Series 1997B 4.95%, 01/07/01 3,430 3,430 St. Joseph County, Indiana Educational Facilities RB (University of Notre Dame) 4.75%, 01/07/01 9,200 9,200 ---------- 104,635 ---------- IOWA -- 0.7% Iowa Finance Authority Solid Waste Disposal RB (Cedar River Paper Co. Project) Series 1994A 5.15%, 01/07/01 22,600 22,600 Iowa Finance Authority Solid Waste Disposal RB (Cedar River Paper Co. Project) Series 1995A 5.15%, 01/07/01 5,950 5,950 Iowa Finance Authority Solid Waste Disposal RB (Cedar River Paper Co. Project) Series 1997 5.15%, 01/07/01 6,000 6,000 Iowa Student Loan Liquidity Corp. Student Loan RB Series 1988B 4.80%, 01/07/01 33,300 33,300 Saint Joseph County, Iowa Economical Development Authority (Western Manor Project) 4.95%, 01/07/01 2,130 2,130 ---------- 69,980 ---------- 36 Par Value -------- ---------- KANSAS -- 0.4% Kansas State Development Finance Authority M/F Housing RB (Bluffs Olathe Apartments) Series 1998X 5.15%, 01/07/01 $ 9,500 $ 9,500 Olathe, Kansas IDRB (Garmin International, Inc. Project) Series 1995 5.15%, 01/07/01 1,700 1,700 Wichita, Kansas Airport Facilities Revenue Refunding Bonds (Cessna Service Center Project) 5.15%, 01/07/01 4,985 4,985 Wichita, Kansas Airport Facilities Revenue Refunding Bonds (Flight Safety International, Inc. Project) 5.05%, 01/07/01 26,170 26,170 ---------- 42,355 ---------- KENTUCKY -- 1.3% Elizabethtown, Kentucky IDRB (Aztec Project) 5.00%, 01/07/01 3,000 3,000 Henderson County, Kentucky Solid Waste Disposal RB (Hudson Foods, Inc. Project) 5.10%, 01/07/01 14,500 14,500 Jefferson County, Kentucky Sports Stadium RB (University of Louisville Athletic Department) 5.00%, 01/07/01 6,600 6,600 Kenton County, Kentucky Airport Board Special Facilities RB Series 2000A 4.85%, 01/07/01 8,915 8,915 Kentucky Higher Education Student Loan Corp. Insured Student Loan RB Series 1991E 4.70%, 01/07/01 37,900 37,900 Kentucky Higher Education Student Loan Corp. Insured Student Loan RB Series 1996A 4.70%, 01/07/01 23,850 23,850 Louisville, Jefferson County, Kentucky Regional Airport Authority Special Facilities RB (UPS Project) 5.05%, 01/07/01 1,200 1,200 Maysville, Kentucky Industrial Building RB (Green Tokai Building) 5.20%, 01/07/01 5,740 5,740 Par Value -------- ---------- Murray, Kentucky IDA Revenue Refunding Bonds (Dean Foods Co. Project) 5.05%, 01/07/01 $ 6,000 $ 6,000 Owensboro, Kentucky Limited Obligation RB (Dart Polymers, Inc. Project) Series 1985A 4.55%, 01/07/01 1,900 1,900 Richmond, Kentucky IDRB (Mikron Project) 5.10%, 01/07/01 8,375 8,375 Wilson County, Kentucky IDB RB (Perma Pipe Project) 5.20%, 01/07/01 3,150 3,150 ---------- 121,130 ---------- LOUISIANA-- 0.6% Calcasieu Parish, Lousiana IDB (Weingarten Realty Project) 5.00%, 01/07/01 1,990 1,990 East Baton Rouge Parish, Lousiana Pollution Control Revenue Refunding Bonds (Exxon Corp. Project) Series 1989 4.95%, 01/07/01 1,700 1,700 Lafayette Parish, Louisiana IDRB (Westwood Village Project) 5.00%, 01/07/01 3,635 3,635 Lake Charles, Louisiana Harbor & Terminal District Dock & Wharf RB (Conoco, Inc. Project) 5.10%, 01/07/01 10,500 10,500 Lake Charles, Louisiana Harbor Improvement RB (Port Improvement Global Industries Project) 4.90%, 01/07/01 15,000 15,000 New Orleans, Louisiana Aviation Board RB Series 1993B 4.80%, 01/07/01 21,035 21,035 ---------- 53,860 ---------- MARYLAND -- 0.4% Maryland State Economic Development Corp. Economic Development RB (Hunter Douglas Project) 5.10%, 01/07/01 3,400 3,400 Maryland State Economic Development Corp. IDRB (Dixon Valve Project) 4.95%, 01/07/01 4,000 4,000 37 SCHWAB MUNICIPAL MONEY FUND SCHEDULE OF INVESTMENTS (in thousands) (continued) December 31, 2000 Par Value -------- ---------- Maryland State Health & Higher Education Facility Authority RB (Mercey Ridge Project) 4.90%, 01/07/01 $ 28,300 $ 28,300 Maryland State Health & Higher Education Facility Authority Pooled Loan Program RB (Kennedy Krieger Project) Series 1993D 4.78%, 01/07/01 2,000 2,000 ---------- 37,700 ---------- MASSACHUSETTS -- 0.0% Massachussets Industrial Finance Authority (Arkansas Electronic Products Corp. Project) 5.20%, 01/07/01 3,300 3,300 ---------- MICHIGAN -- 1.7% Ann Arbor, Michigan Economic Development Corp. Limited Obligation RB (Glacier Hills, Inc. Project) Series 2000A 4.73%, 01/07/01 23,245 23,245 Ann Arbor, Michigan Economic Development Corp. Limited Obligation RB (Glacier Hills, Inc. Project) Series 2000B 4.73%, 01/07/01 9,875 9,875 Georgetown Township, Michigan Economic Development Corp. Limited Obligation RB (Sunset Manor, Inc. Project) 4.71%, 01/07/01 9,180 9,180 Grand Rapids, Michigan Economic Development Corp. RB (Amway Hotel Corp. Project) Series 1991A 4.85%, 01/07/01 7,755 7,755 Michigan State Hospital Finance Authority RB (Martin Luther Memorial Home, Inc. Project) 4.85%, 01/07/01 8,235 8,235 Michigan State Strategic Fund Limited Obligation RB (Advance Plastics Corp.) 5.05%, 01/07/01 2,830 2,830 Michigan State Strategic Fund Limited Obligation RB (American Cancer Society Great Lakes) 5.05%, 01/07/01 6,000 6,000 Par Value -------- ---------- Michigan State Strategic Fund Limited Obligation RB (EPI Printers Inc. Project) 5.05%, 01/07/01 $ 2,800 $ 2,800 Michigan State Strategic Fund Limited Obligation RB (John Widdicomb Co. Project) 5.00%, 01/07/01 1,760 1,760 Michigan State Strategic Fund Limited Obligation RB (Manufacturer's Project) Series 1991 5.00%, 01/07/01 1,255 1,255 Michigan State Strategic Fund Limited Obligation RB (Mechanics Uniform Rental Project) 5.05%, 01/07/01 1,000 1,000 Michigan State Strategic Fund Limited Obligation RB (Orchestra Place Renewal Project) 4.73%, 01/07/01 15,000 15,000 Michigan State Strategic Fund Limited Obligation RB (United Machining Project) Series 1998 5.05%, 01/07/01 6,000 6,000 Michigan State Strategic Fund Limited Obligation RB Series 1998 5.05%, 01/07/01 4,010 4,010 Michigan State Strategic Fund Limited Obligation RB Series 1998B 4.05%, 01/07/01 1,755 1,755 Oakland County, Michigan Economic Development Corp. (Husky Envelope Products, Inc. Project) 5.05%, 01/07/01 4,325 4,325 Oakland County, Michigan Economic Development Corp. Limited Obligation RB (Pontiac Vision Schools Project) 5.45%, 01/07/01 11,000 11,000 Wayne Charter County, Michigan Airport RB (Detroit Metropolitan County Project) Series 1996A 4.90%, 01/07/01 5,850 5,850 Wayne Charter County, Michigan Airport RB (Detroit Metropolitan County Project) Series 1996B 4.80%, 01/07/01 46,880 46,880 ---------- 168,755 ---------- 38 Par Value -------- ---------- MINNESOTA -- 0.5% Bloomington, Minnesota Port Authority Special Tax Revenue Refunding Bond (Mall of America Project) Series 1999B 4.90%, 01/07/01 $ 5,000 $ 5,000 Cohasset, Minnesota Revenue Refunding Bond (Minnesota Power & Light Co. Project) Series 1997A 5.00%, 01/07/01 4,405 4,405 Hennepin County, Minnesota Unlimited GO Series 1995C 4.85%, 01/07/01 600 600 Hennepin County, Minnesota Unlimited GO Series 1996C 5.00%, 01/07/01 3,750 3,750 Mendota Heights, Minnesota IDRB (Dakota Business Plaza Project) 5.35%, 01/07/01 2,300 2,300 Minnesota Agriculture & Economic Development RB (Evangelical Lutheran Project) 4.90%, 01/07/01 7,800 7,800 Minnesota State Higher Education Facilities Authority RB (Carleton College) Series 2000G 4.70%, 01/07/01 12,000 12,000 Minnesota State Higher Education Facilities Authority RB (University of St. Thomas Project) 4.80%, 01/07/01 9,700 9,700 ---------- 45,555 ---------- MISSISSIPPI -- 0.1% Mississippi Business Finance Authority IDRB (Clopay Building Products Co. Project) Series 1999 5.10%, 01/07/01 3,300 3,300 Mississippi Business Financial Corp. IDRB (Electric Mills Wood Project) 5.05%, 01/07/01 5,000 5,000 Mississippi Business Financial Corp. IDRB (Omega Motion Project) Series 1996 5.05%, 01/07/01 6,000 6,000 ---------- 14,300 ---------- Par Value -------- ---------- MISSOURI-- 0.2% Independence, Missouri IDA RB (Groves & Graceland) Series 1997A 5.00%, 01/07/01 $ 3,990 $ 3,990 Missouri Higher Education Loan Authority Student Loan RB Series 1988A 4.75%, 01/07/01 1,000 1,000 Missouri State Development Finance Board IDRB (H.R. Williams Mill Supply Project) Series 1995 5.00%, 01/07/01 3,100 3,100 Missouri State Development Finance Board IDRB (Milbank Manufacturing Co. Project) 5.30%, 01/07/01 3,000 3,000 Missouri State Health and Educational Facilities Authority Health Facilities RB (National Benevolent Association Project) 4.80%, 01/07/01 2,805 2,805 St. Clair, Missouri IDA RB (Private Dynaquip) 5.15%, 01/07/01 1,500 1,500 St. Louis, Missouri IDA RB (Kessler Container Project) 5.15%, 01/07/01 2,500 2,500 Washington, Missouri IDA RB (Pauwels Transformer Project) 5.14%, 01/07/01 3,500 3,500 ---------- 21,395 ---------- MONTANA-- 0.0% Clay County, Montana IDRB (KC Salad Real Estate Project) 4.95%, 01/07/01 2,000 2,000 ---------- NEBRASKA-- 0.2% Dodge County, Nebraska IDRB (Oilgear Project) 5.10%, 01/07/01 1,950 1,950 Nebraska Higher Education Loan Program RB (Nebhelp, Inc. Student Loan Project) Series 1988C 4.90%, 01/07/01 4,150 4,150 39 SCHWAB MUNICIPAL MONEY FUND SCHEDULE OF INVESTMENTS (in thousands) (continued) December 31, 2000 Par Value -------- ---------- Stanton County, Nebraska IDRB (Nucor Corp. Project) Series 1996 5.00%, 01/07/01 $ 10,500 $ 10,500 ---------- 16,600 ---------- NEVADA -- 0.7% Clark County, Nevada Airport Improvement RB Series 1993A 4.70%, 01/07/01 1,200 1,200 Clark County, Nevada Airport Improvement RB (System Subordinate Lien) Series 1995A2 5.10%, 01/07/01 1,200 1,200 Clark County, Nevada Airport Revenue Systems Sub Lien RB Series 1999B1 4.80%, 01/07/01 42,160 42,160 Clark County, Nevada Economic Development RB (University of Nevada Las Vegas Project) 4.85%, 01/07/01 835 835 Nevada Housing Division M/F Housing RB (Apache Pines Apartments Project) Series 1999A 4.90%, 01/07/01 7,415 7,415 Nevada Housing Division M/F Housing RB Series 1989A 4.70%, 01/07/01 5,500 5,500 Nevada Housing Division Multi-Unit Housing RB (Banbridge Apartment Project) Series 2000A 4.90%, 01/07/01 3,960 3,960 Nevada Housing Division Multi-Unit Housing RB (City Center Project) Series 2000A 4.90%, 01/07/01 9,350 9,350 ---------- 71,620 ---------- NEW HAMPSHIRE -- 0.1% New Hampshire State HFA M/F Housing RB (Fairways Project-1) 4.85%, 01/07/01 7,000 7,000 ---------- NEW JERSEY -- 0.0% New Jersey Economic Development Authority Thermal Energy Facilities RB (Thermal Energy Ltd. Partnership I Project) Series 1997 4.65%, 01/07/01 150 150 Par Value -------- ---------- New Jersey Sports & Exposition Authority RB Series 1992C 4.65%, 01/07/01 $ 4,000 $ 4,000 ---------- 4,150 ---------- NEW MEXICO-- 0.9% Albuquerque, New Mexico Airport RB (Subordinated Lien) Series 1996A 4.80%, 01/07/01 12,600 12,600 Albuquerque, New Mexico Airport RB (Subordinated Lien) Governmental Purpose Series 2000A 4.80%, 01/07/01 6,800 6,800 Belen, New Mexico IDRB (Solo Cup, Inc. Project) 5.05%, 01/07/01 3,250 3,250 Farmington, New Mexico Pollution Control Revenue Refunding Bonds (Arizona Public Service Company) Series 1994A 4.90%, 01/07/01 4,200 4,200 Farmington, New Mexico Pollution Control Revenue Refunding Bonds (Arizona Public Service Company) Series 1994B 4.90%, 01/07/01 3,000 3,000 New Mexico State Highway Commission RB (Subordinate Lein) 4.80%, 01/07/01 39,835 39,835 Santa Fe, New Mexico Gross Receipts Tax RB (Wastewater Systems) Series 1997B 4.85%, 01/07/01 17,300 17,300 ---------- 86,985 ---------- NEW YORK -- 3.0% Albany-Dougherty County, New York Hospital Authority RB (Phoebe Putney Memorial Hospital Project) Series 1996 4.90%, 01/07/01 10,800 10,800 Dutchess County, New York IDA Civic Facilities RB (Trinity Pawling School Corp. Project) 4.80%, 01/07/01 2,000 2,000 Long Island Power Authority, New York Electric System RB SubSeries 7B 4.45%, 01/07/01 11,900 11,900 40 Par Value -------- ---------- Long Island, New York Power Authority 4.60%, 01/07/01 $ 14,000 $ 14,000 Long Island, New York Power Authority Electric System RB Series 1998-6 4.90%, 01/07/01 3,500 3,500 Long Island, New York Power Authority Electric System Subordinated RB 4.90%, 01/07/01 17,200 17,200 New York State HFA RB (Tribeca Landing) Series 1997A 4.60%, 01/07/01 5,500 5,500 New York City, New York GO Series 1994B-3 4.95%, 01/07/01 1,100 1,100 New York City, New York GO Series 1993A-8 4.95%, 01/01/01 3,500 3,500 New York City, New York Housing Development Corp. M/F Mortgage RB (15th Street Development Project) Series 2000A 4.45%, 01/07/01 23,000 23,000 New York City, New York IDA IDRB (Allway Tools, Inc. Project) 4.90%, 01/07/01 1,780 1,780 New York City, New York M/F Rental Housing RB (Tribeca Tower Project) Series 1997A 4.50%, 01/07/01 1,200 1,200 New York City, New York Municipal Water Finance Authority Water & Sewer System RB Series 1992C 4.95%, 01/07/01 59,550 59,550 New York City, New York Municipal Water Finance Authority Water & Sewer System RB Series 1994G 4.90%, 01/07/01 46,300 46,300 New York City, New York Municipal Water Finance Authority Water & Sewer System RB Series 1995A 4.75%, 01/07/01 10,000 10,000 New York State Energy Research & Development Authority Pollution Control Revenue Refunding Bonds (Niagara Mohawk Power) Series A 5.15%, 01/07/01 500 500 Par Value -------- ---------- New York State Energy Research & Development Authority Pollution Control Revenue Refunding Bonds (Orange & Rockland Utilities, Inc. Project) Series 1994A 4.55%, 01/07/01 $ 900 $ 900 New York State HFA Housing RB (Union Square South Housing Project) 4.60%, 01/07/01 14,600 14,600 New York State HFA RB (101 West End Avenue Project) Series 1999A 4.75%, 01/07/01 1,200 1,200 New York State HFA RB Series 1997A 4.60%, 01/07/01 57,600 57,600 New York State Local Government Assistance Corp. RB Series 1995F 4.35%, 01/07/01 700 700 Yonkers, New York IDA Civic Facilities RB (Consumers Union Facility Project) 4.80%, 01/07/01 480 480 ---------- 287,310 ---------- NORTH CAROLINA -- 2.0% Buncombe County, North Carolina School GO Series 2000C 4.70%, 01/07/01 14,000 14,000 Burke County, North Carolina Industrial Facilities Pollution Control Financing Authority Industrial RB (Bauer Industries, Inc. Project) 5.05%, 01/07/01 3,155 3,155 Charlotte, North Carolina Airport Revenue Refunding Bonds Series 1997A 4.80%, 01/07/01 27,865 27,865 Concord, North Carolina COP (Concord Project) Series A 4.90%, 01/07/01 7,500 7,500 Forsyth County, North Carolina Industrial Facilities & Pollution Control Financing Authority RB (Plymouth Printing Project) 5.00%, 01/07/01 2,120 2,120 Gates County, North Carolina Industrial Facilities & Pollution Control Financing Authorty Revenue IDRB (Coxe-Lewis Project) 5.05%, 01/07/01 1,815 1,815 41 SCHWAB MUNICIPAL MONEY FUND SCHEDULE OF INVESTMENTS (in thousands) (continued) December 31, 2000 Par Value -------- ---------- Guilford County, North Carolina Industrial Facilities & Pollution Control Financing Authority RB (Crescent Sleep Project) 5.30%, 01/07/01 $ 5,900 $ 5,900 Guilford County, North Carolina Industrial Facilities & Pollution Control Financing Authority RB (Culp, Inc. Project) 5.00%, 01/07/01 3,825 3,825 Guilford County, North Carolina Industrial Facilities & Pollution Control Financing Authority RB (Neal Manufacturing Project) 5.15%, 01/07/01 2,400 2,400 Guilford County, North Carolina Industrial Facilities & Pollution Control Financing Authority RB (Vitafoam, Inc. Project) 5.00%, 01/07/01 5,500 5,500 Hertford County, North Carolina Industrial Facilities & Polltuion Control Financing Authority IDRB (Nucor Corp. Project) Series 2000 4.95%, 01/07/01 17,500 17,500 Hertford County, North Carolina Industrial Facilities & Polltuion Control Financing Authority IDRB (Nucor Corp. Project) Series 2000A 5.00%, 01/07/01 10,500 10,500 Johnston County, North Carolina Industrial Facilites & Pollution Control Financing Authority RB (Flanders Corp. Project) 5.10%, 01/07/01 4,500 4,500 North Carolina Educational Facilities Finance Agency RB (Davidson College) Series 2000B 4.90%, 01/07/01 19,000 19,000 North Carolina Educational Facilities Finance Agency RB (Cannon School Project) 4.90%, 01/07/01 6,500 6,500 North Carolina Educational Facilities Finance Agency RB (High Point University Project) 4.90%, 01/07/01 5,310 5,310 Par Value -------- ---------- North Carolina Educational Facilities Finance Agency RB (Queens College) Series 1999B 4.90%, 01/07/01 $ 6,270 $ 6,270 North Carolina Medical Care Community Hospital Health Care Facilities (Presbyterian Home) 4.90%, 01/07/01 5,500 5,500 North Carolina Medical Care Community Retirement Facilities RB (United Methodist) Series A 4.80%, 01/07/01 15,795 15,795 Rockingham County, North Carolina Industrial Facilities & Pollution Control Financing Authority IDRB (McMichael Mills Project) 5.10%, 01/07/01 4,300 4,300 Rowan County, North Carolina Industrial Facilities Pollution Control Financing Authority (Taylor-Clay Products Project) 5.00%, 01/07/01 4,700 4,700 Sampson County, North Carolina Industrial Facilities & Pollution Control Financing Authority IDRB (Crumpler Plastic Project) 5.00%, 01/07/01 4,100 4,100 Union County, North Carolina Industrial Facilities & Pollution Control Financing Authority RB (Rock-Tenn Converting County Project) Series 1997 5.10%, 01/07/01 1,750 1,750 Wake County, North Carolina Housing Authority M/F RB (Walnut Ridge Apartments Project) 5.15%, 01/07/01 10,075 10,075 Wilmington, North Carolina Housing Authority M/F Housing RB (Garden Lake Estates Project) Series 1999 5.10%, 01/07/01 7,280 7,280 ---------- 197,160 ---------- 42 Par Value -------- ---------- NORTH DAKOTA-- 0.1% Richland County, North Dakota IDRB (Minn-Dak Farmers Co-Op Project) Series 1986B 5.25%, 01/07/01 $ 940 $ 940 Richland County, North Dakota Solid Waste Disposal RB (Minn-Dak Farmers Co-Op Project) Series 1996A 5.25%, 01/07/01 10,330 10,330 ---------- 11,270 ---------- OHIO -- 0.6% Cleveland, Ohio Airport System RB Series 1997D 4.80%, 01/07/01 22,180 22,180 Columbus, Ohio Electric System RB Series 1984 4.35%, 01/07/01 5,480 5,480 Cuyahoga County, Ohio Economic Development RB (Hathaway Brown School Project) Series 1999 4.85%, 01/07/01 14,650 14,650 Ohio Air Quality Development Authority RB (JMG Funding, LP) Series 1994A 4.90%, 01/07/01 2,900 2,900 Ohio Air Quality Development Authority RB (Limited Partnership Project) Series 1994B 4.90%, 01/07/01 14,400 14,400 ---------- 59,610 ---------- OKLAHOMA -- 1.4% Creek County, Oklahoma Industrial Authority IDRB (Henry Vogt Mach Project) Series 1990 5.10%, 01/07/01 2,000 2,000 Garfield County, Oklahoma IDRB (Bank of Commerce Group, Inc. Project) 4.95%, 01/07/01 7,265 7,265 Muldrow, Oklahoma Public Works Authority IDRB (Oklahoma Foods Project) 4.20%, 01/07/01 7,000 7,000 Oklahoma County, Oklahoma Industrial Authority RB (National Cowboy Hall of Fame Project) Series 1999 5.00%, 01/07/01 2,380 2,380 Par Value -------- ---------- Oklahoma Development Finance Authority RB (Shawnee Funding, Ltd.) 5.10%, 01/07/01 $ 4,000 $ 4,000 Oklahoma State Student Loan Authority RB Series 1996A 4.85%, 01/07/01 31,980 31,980 Oklahoma State Student Loan Authority RB Series 1997A 4.90%, 01/07/01 33,000 33,000 Oklahoma State Student Loan Authority RB Series 1998A 4.90%, 01/07/01 25,100 25,100 Oklahoma State Student Loan Authority RB Series 2000A-4 4.75%, 01/07/01 20,945 20,945 Tulsa, Oklahoma Industrial Authority Hospital RB (YMCA of Greater Tulsa Project) Series 1999 5.00%, 01/07/01 2,900 2,900 ---------- 136,570 ---------- OREGON -- 0.7% Gilliam County, Oregon Solid Waste Disposal RB (Waste Management Project) Series 2000A 5.10%, 01/07/01 6,000 6,000 Oregon State Economic Development Authority RB (Kettle Foods Project) Series 186 (a) 5.00%, 01/07/01 6,305 6,305 Oregon State Economic Development Authority RB (Pendleton Flour Mills Project) Series 1982 5.10%, 01/07/01 6,300 6,300 Oregon State Economic Development Commission Economic & IDRB 4.95%, 01/07/01 4,100 4,100 Oregon State Health, Housing, Educational, & Cultural Facilities Authority RB (Quatama Crossing Housing Project) 5.00%, 01/07/01 2,440 2,440 Port of Portland, Oregon Special Obligation RB (Portland Bulk Terminals Limited Liability Corp. Project) 4.90%, 01/07/01 28,000 28,000 43 SCHWAB MUNICIPAL MONEY FUND SCHEDULE OF INVESTMENTS (in thousands) (continued) December 31, 2000 Par Value -------- ---------- Port of Portland, Oregon Special Obligation RB (Portland Bulk Terminals Limited Liability Corp. Project) Series 1999 4.90%, 01/07/01 $ 6,000 $ 6,000 Portland, Oregon M/F Housing RB (Village of Lovejoy Fountain) 5.00%, 01/07/01 7,000 7,000 ---------- 66,145 ---------- PENNSYLVANIA-- 5.2% Allegheny County, Pennsylvania IDA RB 5.00%, 01/01/01 1,000 1,000 Allegheny County, Pennsylvania IDA RB (Longwood at Oakmont) 5.00%, 01/01/01 3,480 3,480 Allegheny County, Pennsylvania IDA RB (USX Corp. Project) 4.70%, 01/01/01 11,900 11,900 Allegheny County, Pennsylvania IDA RB Series 1997C 5.00%, 01/01/01 1,000 1,000 Cambria County, Pennsylvania IDA Resource Recovery RB (Cambria Cogen Co. Project) 4.85%, 01/07/01 16,390 16,390 Cambria County, Pennsylvania IDA Resource Recovery RB (Cambria Cogen Co. Project) Series 1998A1 4.80%, 01/07/01 49,000 49,000 Dauphin County, Pennsylvania General Authority RB (Education & Health Loan Program) Series 1997 4.92%, 01/07/01 8,790 8,790 Delaware County, Pennsylvania IDA RB (YMCA of Philadelphia Project) Series 1999 4.90%, 01/07/01 2,035 2,035 Easton, Pennsylvania City School District GO 4.92%, 01/07/01 4,500 4,500 Lancaster County, Pennsylvania Hospital Authority RB (Brethren Village) 4.92%, 01/07/01 4,300 4,300 Lebanon County, Pennsylvania Health Facilities Authority RB (ECC Retirement Village Project) 4.92%, 01/07/01 2,000 2,000 Par Value -------- ---------- Montgomery County, Pennsylvania IDA Environmental Facilities RB (Lonza, Inc. Project) 4.98%, 01/07/01 $ 4,000 $ 4,000 Montgomery County, Pennsylvania IDA RB (Seton Medical Co.) 4.70%, 01/07/01 5,500 5,500 Montgomery County, Pennsylvania Redevelopment Authority M/F Housing Revenue Refunding Bonds (Glenmore Assoc. Project) Series A 5.00%, 01/07/01 350 350 Pennsylvania Energy Development Authority RB (B&W Ebensburg Project) Series 1986 4.80%, 01/07/01 23,755 23,755 Pennsylvania Energy Development Authority RB (Piney Creek Project) Series 1986A 4.80%, 01/07/01 6,000 6,000 Pennsylvania Higher Education Assistance Agency Student Loan RB Series 1988B 4.75%, 01/07/01 30,000 30,000 Pennsylvania Higher Education Assistance Agency Student Loan RB Series 1988C 4.75%, 01/07/01 4,600 4,600 Pennsylvania Higher Education Assistance Agency Student Loan RB Series 1994A 4.75%, 01/07/01 35,000 35,000 Pennsylvania Higher Education Assistance Agency Student Loan RB Series 1995A 4.75%, 01/07/01 26,500 26,500 Pennsylvania Higher Education Assistance Agency Student Loan RB Series 1997A 5.00%, 01/07/01 49,300 49,300 Pennsylvania Higher Education Assistance Agency Student Loan RB Series 1999A 4.80%, 01/07/01 63,000 63,000 Pennsylvania State Higher Education Assistance Agency Student Loan RB Series 2000A 5.00%, 01/07/01 22,200 22,200 44 Par Value -------- ---------- Pennsylvania State Higher Educational Facilities Authority RB (Ursinus College) 4.75%, 01/07/01 $ 3,200 $ 3,200 Philadelphia, Pennsylvania Hospitals & Higher Education Facilities Authority RB (Wills Eye Hospital Project) 4.90%, 01/07/01 11,000 11,000 Philadelphia, Pennsylvania IDA RB (30th Street Station Project) Series 1987 4.55%, 01/07/01 11,350 11,350 Philadelphia, Pennsylvania IDA RB (City Line Holiday Inn Project) Series 1996 4.75%, 01/07/01 6,700 6,700 Philadelphia, Pennsylvania Water & Waste RB Series 1997B 4.70%, 01/07/01 12,310 12,310 Quakertown, Pennsylvania General Authority Pooled Financing Program Series A 4.75%, 01/07/01 11,807 11,807 Quakertown, Pennsylvania General Authority Series 1998A 4.75%, 01/07/01 1,395 1,395 Quakertown, Pennsylvania Hospital Authority Hospital RB (Hospital Pooled Financing Group) 4.75%, 01/07/01 24,500 24,500 Schuylkill County, Pennsylvania IDA Resource Recovery RB (Gilberton Power Project) Series 1985 4.75%, 01/07/01 1,250 1,250 State Public School Building Authority, Pennsylvania School RB (Parkland School Distict) Series 1999D 4.92%, 01/07/01 4,645 4,645 Washington County, Pennsylvania Authority Lease RB (Girard Estate Refunding Project) Series 1999 4.90%, 01/07/01 33,775 33,775 Washington County, Pennsylvania Authority Lease RB Municipal Facilities Series 1995B-1 4.90%, 01/07/01 7,022 7,022 Par Value -------- ---------- West Cornwall Township, Pennsylvania Municipal Authority RB (Lebanon Valley Crethren) 4.85%, 01/07/01 $ 600 $ 600 ---------- 504,154 ---------- RHODE ISLAND -- 0.6% Rhode Island State & Providence Plantations Consolidated Capital Development Loan Series 2000B 4.60%, 01/07/01 10,000 10,000 Rhode Island State Consolidated Capital Development Loan Series 1999B 4.60%, 01/07/01 7,390 7,390 Rhode Island State Industrial Facilities Corp. IDRB (Greystone of Lincoln Project) 4.85%, 01/07/01 2,600 2,600 Rhode Island State Student Loan Authority Higher Education Loan RB Series 1995-1 4.85%, 01/07/01 12,300 12,300 Rhode Island State Student Loan Authority Higher Education Loan RB Series 1996-2 4.85%, 01/07/01 10,000 10,000 Rhode Island State Student Loan Authority Higher Education Loan RB 1996-3 4.85%, 01/07/01 20,400 20,400 ---------- 62,690 ---------- SOUTH CAROLINA-- 0.4% Greenville, South Carolina County & City IDRB (Stevens Aviation Technology Services Project) 5.00%, 01/07/01 3,500 3,500 South Carolina Economic Development Authority Hospital Facility RB (Sanders Brothers Construction Project) 5.05%, 01/07/01 2,100 2,100 South Carolina Jobs Economic Development Authority IDRB (Electric City Printing Project) 5.05%, 01/07/01 2,400 2,400 45 SCHWAB MUNICIPAL MONEY FUND SCHEDULE OF INVESTMENTS (in thousands) (continued) December 31, 2000 Par Value -------- ---------- South Carolina Jobs Economic Development Authority RB (Brown Packaging Co. Project) 5.05%, 01/07/01 $ 3,300 $ 3,300 South Carolina Jobs Economic Development Authority RB (Specialty Minerals Project) 5.10%, 01/07/01 4,600 4,600 South Carolina Jobs Economic Development Authority RB (Thomas & Betts Corp. Project) 5.05%, 01/07/01 3,100 3,100 South Carolina State Housing Finance & Development Authority M/F Housing RB (Ashley Apartments Project) Series 1999 5.10%, 01/07/01 4,300 4,300 South Carolina State Housing Finance & Development Authority M/F Rental Housing RB (Peidmont) Series 2000B-1 5.10%, 01/07/01 5,755 5,755 South Carolina State Housing Finance & Development Authority M/F Rental Housing RB (Spartanburg) Series 2000C-1 5.10%, 01/07/01 1,960 1,960 Spartanburg County, South Carolina IDA RB (Bemis, Inc.) 4.95%, 01/07/01 4,750 4,750 ---------- 35,765 ---------- SOUTH DAKOTA-- 0.2% South Dakota State Health & Educational Facilities Authority RB (Mckenna Hospital) Series 1994 5.00%, 01/07/01 15,930 15,930 South Dakota State Health & Educational Facilities Authority RB (Sioux Valley Hospital) Series 1992A 4.90%, 01/07/01 4,200 4,200 ---------- 20,130 ---------- Par Value -------- ---------- TENNESSEE-- 2.0% Blount County, Tennessee IDB IDRB (Advance Crystal Technology, Inc. Project) 5.10%, 01/07/01 $ 3,000 $ 3,000 Chattanooga, Tennessee IDRB (National Print Group, Inc. Project) 5.15%, 01/07/01 2,300 2,300 Chattanooga, Tennessee Health Education & Housing Facility Board RB (Baylor School Project) 5.00%, 01/07/01 2,135 2,135 Franklin County, Tennessee IDRB (Hi-Tech Project) Series 1997 5.00%, 01/07/01 5,600 5,600 Huntingdon, Tennessee IDB IDRB (Associated Rubber Co. Project) Series 1999 5.10%, 01/07/01 2,500 2,500 Jackson County, Tennessee IDRB Solid Waste Facilities (Ameristeel Corp. Project) 5.15%, 01/07/01 3,800 3,800 McMinn County, Tennessee IDB Solid Waste Disposal RB (Bowater, Inc. Project) 5.05%, 01/07/01 13,500 13,500 Metropolitan Nashville & Davidson County, Tennessee IDRB (Bind Technologies, Inc.) 5.15%, 01/07/01 3,650 3,650 Metropolitan Nashville & Davidson County, Tennessee M/F Housing IDRB (Arbor Crest) Series 1985B 4.95%, 01/07/01 10,550 10,550 Metropolitan Nashville & Davidson County, Tennessee M/F Housing IDRB (Arbor Knoll) Series 1985A 4.95%, 01/07/01 1,000 1,000 Sevier County, Tennessee Public Building Authority Local Government Public Improvement Bonds Series 1995C1 4.90%, 01/07/01 5,300 5,300 Sevier County, Tennessee Public Building Authority Local Government Public Improvement Bonds Series 1995C3 4.90%, 01/07/01 10,000 10,000 46 Par Value -------- ---------- Sevier County, Tennessee Public Building Authority Local Government Public Improvement Bonds Series 1995E3 4.90%, 01/07/01 $ 2,635 $ 2,635 Sevier County, Tennessee Public Building Authority Local Government Public Improvement Bonds Series 1996A 4.90%, 01/07/01 7,000 7,000 Sevier County, Tennessee Public Building Authority Local Government Public Improvement Bonds Series 1996D1 4.90%, 01/07/01 2,755 2,755 Sevier County, Tennessee Public Building Authority Local Government Public Improvement Bonds Series 1996E1 4.90%, 01/07/01 5,800 5,800 Sevier County, Tennessee Public Building Authority Local Government Public Improvement Bonds Series 1996E4 4.90%, 01/07/01 3,000 3,000 Sevier County, Tennessee Public Building Authority Local Government Public Improvement Bonds Series 1996F1 4.90%, 01/07/01 9,000 9,000 Sevier County, Tennessee Public Building Authority Local Government Public Improvement Bonds Series 1996F2 4.90%, 01/07/01 8,135 8,135 Sevier County, Tennessee Public Building Authority Local Government Public Improvement Bonds Series 1996G 4.90%, 01/07/01 6,290 6,290 Sevier County, Tennessee Public Building Authority Local Government Public Improvement Bonds Series 1997I-A1 4.90%, 01/07/01 10,000 10,000 Sevier County, Tennessee Public Building Authority Local Government Public Improvement Bonds Series II-C 4.90%, 01/07/01 985 985 Sevier County, Tennessee Public Building Authority Local Government Public Improvement Bonds Series III -C1 4.90%, 01/07/01 10,815 10,815 Sevier County, Tennessee Public Building Authority Local Government Public Improvement Bonds Series III-B1 4.95%, 01/07/01 10,000 10,000 Par Value -------- ---------- Shelby County, Tennessee Health, Education, & Housing Facilities Board Educational Facilities RB (Rhodes College) 4.80%, 01/07/01 $ 10,000 $ 10,000 Shelby County, Tennessee Health, Education, & Housing Facilities Board M/F Housing RB Series 1997A 4.95%, 01/07/01 5,000 5,000 Sumner County, Tennessee Health, Education, & Housing Facilities Board RB (Hospital Alliance Pooled Program) Series 1999A 5.00%, 01/07/01 15,000 15,000 Tennessee Volunteer State Student Loan Funding Corp. RB Series A 4.80%, 01/07/01 10,000 10,000 Tennessee Volunteer State Student Loan Funding Corp. RB Series 1997A-3 4.80%, 01/07/01 13,300 13,300 ---------- 193,050 ---------- TEXAS -- 6.8% Amarillo, Texas Health Facilities Corp. Hospital RB (High Plains Baptist Hospital) Series 1985 5.20%, 01/07/01 3,000 3,000 Amarillo, Texas Health Facilities Corp. Revenue Refunding Bonds 4.90%, 01/07/01 3,155 3,155 Bexar County, Texas Health Facilities Development Corp. RB (Chandler Memorial Home Project) Series 1995 4.98%, 01/07/01 4,605 4,605 Brazos River Authority, Texas Pollution Control Revenue Refunding Bonds (Texas Utilities Electric) Series 1997A 5.15%, 01/01/01 23,500 23,500 Brazos River, Texas Higher Education Authority RB Series 1993B1 4.80%, 01/07/01 38,000 38,000 Brazos River, Texas River Authority Pollution Control Revenue Refunding Bonds (Utilities Electric Co. Project) Series 1996B 5.30%, 01/01/01 800 800 47 SCHWAB MUNICIPAL MONEY FUND SCHEDULE OF INVESTMENTS (in thousands) (continued) December 31, 2000 Par Value -------- ---------- Brownsville County, Texas Industrial Development Corp. Revenue Refunding Bonds (Rich Seapak Corp. Project) 5.10%, 01/07/01 $ 3,750 $ 3,750 Calhoun County, Texas Navigation IDA Port RB (British Petroleum) 5.10%, 01/01/01 20,300 20,300 Collin County, Texas HFA M/F Housing RB (Huntington Apartments Project) 4.99%, 01/07/01 6,150 6,150 Euless, Texas IDA RB (Ferguson Enterprises, Inc. Project) 4.95%, 01/07/01 4,950 4,950 Grand Prairie, Texas IDA IDRB (NTA Leasing Co. Project) Series 1994 4.95%, 01/07/01 1,840 1,840 Gulf Coast, Texas IDA RB (Gruma Corp. Project) 4.90%, 01/07/01 6,440 6,440 Harris County, Texas Housing Finance Corp. M/F Housing RB (Dominion Square Apartments Project) 4.78%, 01/07/01 3,300 3,300 Lavaca-Navidad River Authority, Texas Water Supply System Contract RB (Formosa Plastics Corp. Project) (a) 4.95%, 01/07/01 13,600 13,600 Lubbock, Texas Educational Facilities Authority RB (Lubbock Christian University Project) 4.90%, 01/07/01 6,600 6,600 Mansfield, Texas Industrial Development Corp. RB (Southern Champion Tray Project) Series 1999 5.10%, 01/07/01 3,100 3,100 North Texas Higher Education Authority Income Tax Student Loan Revenue Refunding Bonds (Texas Student Loan Project) 4.70%, 01/07/01 9,000 9,000 North Texas Higher Education Authority Income Tax Student Loan Revenue Refunding Bonds Series 1987A 4.80%, 01/07/01 87,750 87,750 Par Value -------- ---------- North Texas Higher Education Authority Income Tax Student Loan Revenue Refunding Bonds 4.75%, 01/07/01 $ 27,900 $ 27,900 North Texas Higher Education Authority Income Tax Student Loan Revenue Refunding Bonds Series 1996A 4.75%, 01/07/01 7,400 7,400 North Texas Higher Education Authority Income Tax Student Loan Revenue Refunding Bonds Series 1996B 4.75%, 01/07/01 4,000 4,000 North Texas Higher Education Authority Income Tax Student Loan Revenue Refunding Bonds Series 1996C 4.75%, 01/07/01 5,600 5,600 North Texas Higher Education Authority Income Tax Student Loan Revenue Refunding Bonds Series 1996D 4.75%, 01/07/01 4,000 4,000 North Texas Higher Education Authority Income Tax Student Loan Revenue Refunding Bonds Series 2000A 4.70%, 01/07/01 43,000 43,000 Panhandle Plains, Texas Higher Education Authority Student Loan RB Series 1991A 4.80%, 01/07/01 23,000 23,000 Panhandle Plains, Texas Higher Education Authority Student Loan RB Series 1992A 4.80%, 01/07/01 15,500 15,500 Panhandle Plains, Texas Higher Education Authority Student Loan RB Series 1992A1 4.80%, 01/07/01 2,400 2,400 Panhandle Plains, Texas Higher Education Authority Student Loan RB Series 1993A 4.80%, 01/07/01 28,700 28,700 Panhandle Plains, Texas Higher Education Authority Student Loan RB Series 1995A 4.80%, 01/07/01 18,300 18,300 Panhandle Plains, Texas Higher Education Authority Student Loan RB Series 1997X 4.80%, 01/07/01 18,300 18,300 48 Par Value -------- ---------- Robertson County, Texas Industrial Development Corp. IDRB (Sanderson Farms Project) Series 1995 5.05%, 01/07/01 $ 3,700 $ 3,700 San Antonio, Texas IDA IDRB (Gruma Corp. Project) 4.90%, 01/07/01 4,095 4,095 South Texas Higher Education Authority Student Loan RB 4.80%, 01/07/01 120,200 120,200 South Texas Higher Education Authority Student Loan RB Series 1997Z 4.80%, 01/07/01 12,000 12,000 Tarrant County, Texas IDRB (Mortex Products, Inc. Project) 5.15%, 01/07/01 4,000 4,000 Texas Capital Health Facilities Development Corp. RB (Island On Lake Travis Ltd. Project) 4.80%, 01/07/01 8,500 8,500 Texas Municipal Gas Corp. Gas Reserve RB Weekly Senior Lien 4.80%, 01/07/01 44,135 44,135 Texas State Refunding Bond (Veterans Housing Assistance Fund) Series 1995 4.70%, 01/07/01 3,485 3,485 Texas State Department of Housing & Community Affairs M/F Housing RB (Creek Point Apartments Project) 4.95%, 01/07/01 7,200 7,200 Trinity River Authority, Texas Solid Waste Disposal RB (Community Waste Project) 5.10%, 01/07/01 7,700 7,700 Trinity River Authority, Texas Pollution Control RB (Lafarge Corp. Project) 5.15%, 01/07/01 5,100 5,100 ---------- 658,055 ---------- UTAH -- 2.1% Central Utah Water Conservancy District Revenue Refunding Bond Series 1998E 4.85%, 01/07/01 8,510 8,510 Salt Lake City, Utah Special Facilities Revenue Refunding Bonds (Delta Airlines, Inc. Project) 4.85%, 01/07/01 23,510 23,510 Par Value -------- ---------- Utah State Board of Regents Student Loan RB Series 1993A 4.70%, 01/07/01 $ 26,850 $ 26,850 Utah State Board of Regents Student Loan RB Series 1995L 4.85%, 01/07/01 58,200 58,200 Utah State Board of Regents Student Loan RB Series 1996Q 4.75%, 01/07/01 49,700 49,700 Utah State Board of Regents Student Loan RB Series 1997R 4.85%, 01/07/01 26,355 26,355 Utah State GO Series 1999D 4.85%, 01/07/01 6,000 6,000 Woods Cross City, Utah M/F RB (Spring Wood Apartments) 4.98%, 01/07/01 3,605 3,605 ---------- 202,730 ---------- VERMONT -- 0.2% Vermont Economic Development Authority IDRB (AGRI Mark, Inc. Project) Series 1999A 5.15%, 01/07/01 17,000 17,000 Vermont Economic Development Authority IDRB (AGRI Mark, Inc. Project) Series 1999B 5.15%, 01/07/01 1,000 1,000 ---------- 18,000 ---------- VIRGINIA -- 0.3% Alexandria, Virginia IDA Resource Recovery RB (Alexandria Arlington Waste-to-Energy Facility Project) Series 1986A 5.05%, 01/01/01 5,000 5,000 Chesterfield County, Virginia IDA Solid Waste Disposal Facilities RB (Tidewater Fibre Corp. Project) 5.05%, 01/07/01 9,000 9,000 King George County, Virgina IDA Solid Waste Disposal Facility (Garnet of Virginia Project) Series 1996 5.15%, 01/07/01 3,700 3,700 Loudoun County, Virginia IDRB (Electronic Instrumentation Project) 5.05%, 01/07/01 2,460 2,460 49 SCHWAB MUNICIPAL MONEY FUND SCHEDULE OF INVESTMENTS (in thousands) (continued) December 31, 2000 Par Value -------- ---------- Portsmouth, Virginia Redevelopment & Housing Authority M/F Housing RB (Churchland North Apartments Project) 5.10%, 01/07/01 $ 4,500 $ 4,500 Staunton, Virginia IDRB (Diebold, Inc.- Staunton Project) Series 1997 4.95%, 01/07/01 2,835 2,835 Virginia Beach, Virginia Development Authority M/F Housing RB (Silver Hill at Thalia, LLC Project) Series 1999 5.10%, 01/07/01 4,400 4,400 ---------- 31,895 ---------- WASHINGTON -- 2.5% Algona, Washington Economic Development Corp. IDRB (Aitchison Family Partnership Project) 4.90%, 01/07/01 2,560 2,560 Douglas County, Washington Water Economic Development RB 5.15%, 01/07/01 6,500 6,500 Everett, Washington IDA RB (Partners Trust/Synsor Project) Series 1996 5.10%, 01/07/01 4,300 4,300 King County, Washington Economic Enterprise Corp. RB (Sunrise Project) Series 1997 5.10%, 01/07/01 3,700 3,700 King County, Washington HFA M/F Housing RB (Auburn County Apartments) 5.15%, 01/07/01 8,365 8,365 Olympia, Washington Economic Development Authority (Solid Waste Lemay Enterprises Project) 5.10%, 01/07/01 8,160 8,160 Pierce County, Washington Economic Development Corp. RB (Flex-A-Lite Consolidated Project) 5.10%, 01/07/01 3,000 3,000 Pierce County, Washington Economic Development Corp. RB (K & M Holdings II Project) Series 1997 5.05%, 01/07/01 1,605 1,605 Pierce County, Washington Economic Development Corp. RB (McFarland Cascade Project) 5.15%, 01/07/01 2,000 2,000 Par Value -------- ---------- Pierce County, Washington Economic Development Corp. RB (Solid Waste Lemay Enterprises Project) 5.10%, 01/07/01 $ 3,500 $ 3,500 Pilchuck, Washington Water Development Corp. IDRB (Romac Industrial, Inc. Project) 5.45%, 01/07/01 6,250 6,250 Port Benton, Washington Economic Development Corp. Solid Waste RB (ATG, Inc. Project) 5.10%, 01/07/01 23,500 23,500 Port Centralia, Washington IDB (Solid Waste Lemay Enterprises Project) 5.10%, 01/07/01 2,200 2,200 Port Moses Lake, Washington Public Corp. RB (Moses Lake Industrial Project) Series 1995 5.10%, 01/07/01 3,000 3,000 Port Moses Lake, Washington Public Corp. RB (National Frozen Foods Corp.) 5.00%, 01/07/01 6,100 6,100 Port Townsend, Washington IDRB (Port Townsend Paper Corp.) 4.95%, 01/07/01 1,500 1,500 Port Townsend, Washington IDRB (Port Townsend Paper Corp.) Series 1988B 4.95%, 01/07/01 1,000 1,000 Seattle, Washington HDA RB (Capitol Hill Housing Improvement & HRG Project) 5.10%, 01/07/01 4,570 4,570 Seattle, Washington HDA RB (Casa Pacifica Apartments Project) Series 1997 5.10%, 01/07/01 3,150 3,150 Spokane County, Washington Industrial Development Corp. (Metal Sales Manufacturing Corp. Project) 5.18%, 01/07/01 1,890 1,890 Tacoma, Washington Housing Authority RB (Crown Assisted Living Project) 5.05%, 01/07/01 3,400 3,400 Washington County, Nebraska IDRB (Cargill Dow Polymers, LLC) 5.10%, 01/01/01 20,000 20,000 50 Par Value -------- ---------- Washington Health Care Facilities Authority RB (Yakima Valley Farm Workers Clinic) Series 1997 5.00%, 01/07/01 $ 3,600 $ 3,600 Washington State Economic Development Finance Authority (Skills, Inc Project) (a) 5.05%, 01/07/01 3,300 3,300 Washington State Economic Development Finance Authority ACES (Tank Project) Series 1998B 5.10%, 01/07/01 1,400 1,400 Washington State Economic Development Finance Authority Economic Development RB (Seadrunar Project) Series 2000E 4.85%, 01/07/01 4,660 4,660 Washington State Economic Development Finance Authority IDRB (Tonkin Building) Series 1997A 5.10%, 01/07/01 1,000 1,000 Washington State Economic Development Finance Authority RB (Hamilton Materials Project) 5.15%, 01/07/01 4,600 4,600 Washington State Economic Development Finance Authority RB (Hunter Douglas Project) Series 1997A 5.10%, 01/07/01 3,500 3,500 Washington State Economic Development Finance Authority Solid Waste Disposal RB (Waste Management Project) Series 2000H 5.10%, 01/07/01 6,825 6,825 Washington State Economic Development Finance Authority Solid Waste Disposal RB (Waste Management Project) Series 2000I 5.10%, 01/07/01 3,415 3,415 Washington State Economic Development Finance Authority Solid Waste Disposal RB (Waste Manangement Project) Series 2000L 4.10%, 01/07/01 7,235 7,235 Washington State Housing Finance Commision M/F RB (Carlyle Care Center Project Series) 2000A 5.30%, 01/01/01 3,055 3,055 Par Value -------- ---------- Washington State HFA M/F Housing Mortgage RB (Brittany Park Phase 3 Project) 5.10%, 01/07/01 $ 3,480 $ 3,480 Washington State HFA M/F Housing Mortgage RB (Canyon Lake II) Series 1993A 5.00%, 01/07/01 4,565 4,565 Washington State HFA M/F Housing Mortgage RB (Lake Washington Apartments Project) Series 1996 5.10%, 01/07/01 8,650 8,650 Washington State HFA M/F Housing Mortgage RB (Meridian Court Apartments) Series 1996 5.10%, 01/07/01 6,800 6,800 Washington State HFA M/F Housing Mortgage RB (Merrill Gardens Project) Series 1997A 5.05%, 01/07/01 2,600 2,600 Washington State HFA M/F Housing Mortgage RB (Rosecreek Apartments Project) 5.05%, 01/07/01 3,570 3,570 Washington State HFA M/F Housing Mortgage RB (Woodrose Apartment Project) Series 1999A 5.00%, 01/07/01 6,750 6,750 Washington State Housing Finance Commission M/F Housing RB (Lakewood Meadows Apartments Project) Series 2000A 5.10%, 01/07/01 3,140 3,140 Washington State Housing Finance Commission M/F Housing RB (Mill Pointe Apartments Project) Series 1999A 5.15%, 01/01/01 2,500 2,500 Washington State Housing Finance Commission Non-Profit Housing RB (Emerald Heights Project) Series 1990 5.00%, 01/01/01 4,200 4,200 Washington State Housing Finance Commission Nonprofit Housing Revenue Refunding Bond (Panorama City Project) 5.20%, 01/01/01 8,860 8,860 51 SCHWAB MUNICIPAL MONEY FUND SCHEDULE OF INVESTMENTS (in thousands) (continued) December 31, 2000 Par Value -------- ---------- Yakama Indian Nation, Washington Confederated Tribes & Bands (Yakama Forests Products Project) 5.10%, 01/07/01 $ 7,800 $ 7,800 Yakima County, Washington Public Corp. IDRB (Cowiche Growers Project) 5.15%, 01/07/01 3,600 3,600 Yakima County, Washington Public Corp. RB (Hi-Country Foods Project) 5.10%, 01/07/01 7,000 7,000 Yakima County, Washington Public Corp. RB (Michaelson Packaging Project) 5.10%, 01/07/01 3,000 3,000 Yakima County, Washington Public Corp. RB (Printing Press Project) 5.10%, 01/07/01 2,000 2,000 ---------- 241,355 ---------- WEST VIRGINIA -- 0.5% Fayette County, West Virgina Solid Waste Disposal Facilities RB (Georgia-Pacific Corp. Project) Series 1995 5.10%, 01/07/01 10,600 10,600 Marion County, West Virginia Solid Waste Disposal Facilities RB (Grant Town Project) Series 1990B 4.75%, 01/07/01 13,325 13,325 Marion County, West Virginia Solid Waste Disposal Facilities RB (Grant Town Project) Series 1990C 4.75%, 01/07/01 20,600 20,600 Marion County, West Virginia Solid Waste Disposal Facilities RB (Grant Town Project) Series 1990D 4.75%, 01/07/01 4,000 4,000 West Virginia State Hospital Finance Authority RB (St. Joseph's Hospital Project) Series 1987 4.98%, 01/07/01 1,700 1,700 ---------- 50,225 ---------- WISCONSIN -- 0.5% Carlton, Wisconsin Pollution Control RB (Wisconsin Power & Light Co. Project) 5.15%, 01/07/01 5,800 5,800 Chilton, Wisconsin IDRB (Kaytee Products, Inc. Project) Series 1995 5.20%, 01/07/01 910 910 Par Value -------- ---------- Colburn, Wisconsin IDRB (Heartland Farms Project) Series 1994 5.10%, 01/07/01 $ 6,900 $ 6,900 Grafton, Wisconsin IDRB (Milwaukee Sign Co. Project) 5.10%, 01/07/01 735 735 Kenosha, Wisconsin IDRB (Asyst Tech, LLC Project) 4.98%, 01/07/01 5,000 5,000 Lac Du Flambeau, Band of Lake Superior, Wisconsin Chippewa Indians Special Obligation Bonds (Simpson Electric Co. Project) Series 1985 4.90%, 01/07/01 3,800 3,800 Rapids City, Wisconsin IDRB (Theile Kaolin of Wisconsin, Inc. Project) Series 1998 5.10%, 01/07/01 2,250 2,250 Rhinelander, Wisconsin IDRB (Lake Shore, Inc. Project) 5.10%, 01/07/01 3,820 3,820 Wisconsin Housing & Economic Development Authority RB (Ultratec, Inc. Project) Series 7 5.10%, 01/07/01 3,140 3,140 Wisconsin State Health & Education Facilities Authority RB (Sinai Samaritan) Series 1994A 4.95%, 01/07/01 15,817 15,817 ---------- 48,172 ---------- WYOMING -- 0.9% Jackson County, Wyoming Pollution Control RB (Chevron Project) 4.90%, 01/07/01 9,400 9,400 Lincoln County, Wyoming Pollution Control RB (Exxon Corp. Project) Series 1987A 5.05%, 01/01/01 8,400 8,400 Lincoln County, Wyoming Pollution Control RB (Exxon Corp. Project) Series 1987B 5.05%, 01/01/01 18,700 18,700 Lincoln County, Wyoming Pollution Control RB (Exxon Corp. Project) Series 1987C 5.05%, 01/01/01 19,500 19,500 52 Par Value -------- ---------- Unita County, Wyoming Pollution Control RB (Amoco Project) 4.85%, 01/01/01 $ 2,200 $ 2,200 Unita County, Wyoming Pollution Control RB (Chevron Corp. Project) Series 1993 4.90%, 01/01/01 25,090 25,090 Unita County, Wyoming Pollution Control RB (Chevron USA, Inc. Project) 4.90%, 01/01/01 2,900 2,900 Unita County, Wyoming Pollution Control RB (Chevron USA, Inc. Project) Series. 1992 E17 4.90%, 01/01/01 5,000 5,000 ---------- 91,190 ---------- TOTAL VARIABLE RATE OBLIGATIONS (Cost $5,600,768) 5,600,768 ---------- VARIABLE RATE TENDER OPTION BONDS -- 10.8% (a)(b)(f) ALASKA -- 0.2% Alaska State Housing Finance Corp. TOB Series 1999D 4.70%, 01/07/01 21,805 21,805 ---------- COLORADO-- 0.1% Colorado HFA S/F Mortgage TOB Series 1999M 4.99%, 01/07/01 8,920 8,920 ---------- DELAWARE -- 0.0% Delaware State GO Refunding Bond TOB Series 258 4.94%, 01/07/01 3,995 3,995 ---------- FLORIDA -- 0.1% Florida State Board of Finance Department General Services RB TOB Series 317 4.94%, 01/07/01 7,155 7,155 Jacksonville, Florida Electric Authority RB TOB Series 2000FF 4.70%, 01/07/01 8,295 8,295 ---------- 15,450 ---------- Par Value -------- ---------- GEORGIA-- 0.8% Atlanta, Georgia Airport RB TOB Series 376 4.94%, 01/07/01 $ 10,075 $ 10,075 Atlanta, Georgia Airport RB TOBP (PA-677) 4.94%, 01/07/01 13,730 13,730 Atlanta, Georgia Water & Wastewater RB TOB Series 329 4.97%, 01/07/01 1,000 1,000 Atlanta, Georgia Water & Wastewater RB TOB Series 398 4.94%, 01/07/01 6,295 6,295 Georgia State GO TOB Series 18 4.94%, 01/07/01 13,855 13,855 Georgia State GO TOB Series 1998-1003 4.94%, 01/07/01 20,245 20,245 Georgia State GO TOB Series 2000-1001 4.94%, 01/07/01 13,000 13,000 ---------- 78,200 ---------- HAWAII -- 0.1% Hawaii State Department of Budget & Finance Special Purpose RB TOBP (PA-795R) 4.99%, 01/07/01 8,195 8,195 Hawaii State GO TOB Series 1996C 4.94%, 01/07/01 6,000 6,000 ---------- 14,195 ---------- ILLINOIS -- 1.4% Chicago, Illinois Midway Airport RB TOB 4.94%, 01/07/01 24,480 24,480 Chicago, Illinois S/F Mortgage RB Series 1999N TOB 4.99%, 01/07/01 9,995 9,995 Chicago, Illinois Waterworks Senior Lien RB TOB 4.94%, 01/07/01 12,975 12,975 Illinois Educational Facilities TOB 4.70%, 01/07/01 2,000 2,000 Illinois Metropolitan Pier and Exposition Authority TOB (Mccormick Place Exposition Project) 4.94%, 01/07/01 29,145 29,145 53 SCHWAB MUNICIPAL MONEY FUND SCHEDULE OF INVESTMENTS (in thousands) (continued) December 31, 2000 Par Value -------- ---------- Illinois Regional Transportation Authority GO TOB 4.94%, 01/07/01 $ 23,730 $ 23,730 Illinois State GO TOB 4.94%, 01/07/01 14,000 14,000 Illinois State GO TOB Series 257 4.94%, 01/07/01 4,000 4,000 Illinois Various Counties GO TOB 4.94%, 01/07/01 12,055 12,055 University of Illinois Revenue TOB Merlot Series 2000S 4.70%, 01/07/01 3,500 3,500 ---------- 135,880 ---------- INDIANA -- 0.2% Indiana State Housing TOB Series 1999A 4.99%, 01/07/01 9,995 9,995 Indiana Transportation Finance Authority Highway RB TOB 4.94%, 01/07/01 9,800 9,800 ---------- 19,795 ---------- KANSAS -- 0.4% Kansas Department of Transportation Highway RB TOB Series 1999 4.94%, 01/07/01 37,500 37,500 ---------- KENTUCKY -- 0.2% Kentucky Housing Corporate Housing Revenue TOB Merlot Series 2000U 4.75%, 01/07/01 9,685 9,685 Louisville & Jefferson Counties, Kentucky Metro Sewer District TOB Series A 4.94%, 01/07/01 6,115 6,115 ---------- 15,800 ---------- MAINE -- 0.0% Maine Turnpike Authority RB TOB 4.94%, 01/07/01 3,000 3,000 ---------- MARYLAND -- 0.1% Maryland State Community Housing Development Administration Department S/F Mortgage Revenue TOBP (PA-634) 4.99%, 01/07/01 8,660 8,660 ---------- Par Value -------- ---------- MASSACHUSETTS -- 0.2% Massachusetts State Water Pollution Abatement Trust Water Pollution TOB Series 1999N 4.65%, 01/07/01 $ 16,500 $ 16,500 ---------- MICHIGAN-- 0.1% Detroit, Michigan Water Supply TOB 4.94%, 01/07/01 10,680 10,680 ---------- MINNESOTA -- 0.1% Rochester, Minnesota Health Care Facilities RB TOB Series 177 4.94%, 01/07/01 7,130 7,130 ---------- MISSISSIPPI-- 0.1% Mississippi S/F HFA TOB Series 1997G 4.99%, 01/07/01 12,330 12,330 ---------- NEBRASKA -- 0.0% Nebraska Investment Finance Authority S/F Housing Revenue Merlot TOB Series 2000O 4.75%, 01/07/01 3,890 3,890 ---------- NEVADA -- 0.3% Clark County, Nevada School District GO TOB Series 378 4.94%, 01/07/01 4,415 4,415 Clark County, Nevada School District TOB Series 2000-5 4.94%, 01/07/01 19,935 19,935 ---------- 24,350 ---------- NEW HAMPSHIRE -- 0.1% New Hampshire State HFA S/F Revenue TOB Series 1998G 4.99%, 01/07/01 10,530 10,530 ---------- NEW JERSEY-- 0.3% New Jersey Health Care TOBP (PA-504) Series 1998B 4.74%, 01/07/01 6,520 6,520 New Jersey State Housing and Mortgage Financing Agency TOBP (PT-287) 5.25%, 01/07/01 4,755 4,755 New Jersey State Transportation Trust Fund Authority TOB Series 2000C 4.74%, 01/07/01 1,095 1,095 54 Par Value -------- ---------- New Jersey State Turnpike Authority Turnpike RB TOBP (PA-719) 4.77%, 01/07/01 $ 7,795 $ 7,795 Port Authority of New York & New Jersey TOB Series 2000Z 4.65%, 01/07/01 5,095 5,095 ---------- 25,260 ---------- NEW YORK -- 1.2% Long Island Power Authority, New York Electric System RB TOB Series 1998A 4.94%, 01/07/01 10,970 10,970 Long Island Power Authority, New York Electric System RB TOB Series 338 4.84%, 01/07/01 22,695 22,695 Long Island Power Authority, New York Electric System RB TOBP (PA-565) 4.90%, 01/07/01 15,000 15,000 New York City, New York GO TOB (CoreStates Merlot Program) Series 1997C 4.65%, 01/07/01 17,825 17,825 New York City, New York Municipal Water Finance Authority Water & Sewer Systems RB TOB Series 158 4.84%, 01/07/01 9,995 9,995 New York City, New York Transitional Finance Authority Future Tax Secured TOB Series 1999B 4.65%, 01/07/01 14,860 14,860 New York State Dormitory Authority RB TOB (Montefiore Medical Center Project) Series 156 4.87%, 01/07/01 1,530 1,530 New York State Mortgage Agency Revenue TOB Series 1999F 4.84%, 01/07/01 10,700 10,700 Port Authority of New York & New Jersey Special Obligation RB TOP 4.84%, 01/07/01 16,530 16,530 ---------- 120,105 ---------- NORTH CAROLINA -- 0.0% North Carolina State Public School Building TOBP Series 249 4.94%, 01/07/01 2,500 2,500 ---------- Par Value -------- ---------- OHIO -- 0.1% Ohio Housing Finance Agency Mortgage RB TOB Series 2000AA 4.75%, 01/07/01 $ 5,995 $ 5,995 Ohio Housing Finance Agency Resident Mortgage TOBP (PA-758) 4.99%, 01/07/01 3,950 3,950 ---------- 9,945 ---------- PENNSYLVANIA -- 0.5% Pennsylvania HFA S/F Mortgage RB TOBP (PT-278) Series 1999-66A 4.92%, 01/07/01 12,065 12,065 Pennsylvania HFA TOB Series 1999U 4.97%, 01/07/01 19,505 19,505 Pennsylvania State of Commonwealth TOB Series 1997C 4.94%, 01/07/01 12,870 12,870 ---------- 44,440 ---------- PUERTO RICO-- 0.0% Puerto Rico Commonwealth Highway & Transportation Authority Revenue TOBP (PA-605) 4.34%, 01/07/01 2,410 2,410 ---------- SOUTH CAROLINA -- 0.3% South Carolina Public Service Authority Tax Exempt Trust Receipts TOB 4.94%, 01/07/01 4,000 4,000 South Carolina Transportation Infrastructure RB TOB Series 1999A 4.94%, 01/07/01 22,610 22,610 ---------- 26,610 ---------- TENNESSEE-- 0.1% Chattanooga, Tennessee IDB TOB 4.94%, 01/07/01 6,000 6,000 ---------- TEXAS -- 1.5% Austin, Texas Independent School District TOB 4.94%, 01/07/01 5,700 5,700 Austin, Texas Public Improvement TOB 4.94%, 01/07/01 6,000 6,000 Dallas Fort Worth, Texas International Airport RB TOBP (PA-678) 4.99%, 01/07/01 7,045 7,045 55 SCHWAB MUNICIPAL MONEY FUND SCHEDULE OF INVESTMENTS (in thousands) (continued) December 31, 2000 Par Value -------- ---------- Denton, Texas Utility Systems RB TOB Series 369 4.94%, 01/07/01 $ 5,230 $ 5,230 Eagle, Texas Texas A&M Board of Regents Permanent University Fund TOB 4.94%, 01/07/01 28,445 28,445 El Paso, Texas Water & Sewer Revenue TOB Series 1999 4.99%, 01/07/01 14,060 14,060 Harris County, Texas Health Facility Development Corp. TOB 4.94%, 01/07/01 14,850 14,850 Houston, Texas Airport System Sublien RB TOB 4.94%, 01/07/01 10,000 10,000 Houston, Texas Higher Education Finance Corp. RB TOB Series 445 4.94%, 01/07/01 5,940 5,940 Houston, Texas Public Improvement Revenue Refunding Bonds TOB Series 1998A 4.94%, 01/07/01 21,655 21,655 Lower Colorado River Authority, Texas TOB 4.94%, 01/07/01 6,000 6,000 Texas Department of Housing & Community Affairs Residential Meeting RB TOB Series 1999C 4.99%, 01/07/01 14,995 14,995 Texas State Public Finance Authority GO Refunding TOBP Series 290 4.94%, 01/07/01 4,200 4,200 ---------- 144,120 ---------- UTAH -- 0.7% Intermountain Power Agency, Utah Power Supply TOB Series 1997B 4.94%, 01/07/01 10,995 10,995 Intermountain Power Agency, Utah Power Supply TOB Series 409 4.94%, 01/07/01 13,795 13,795 Utah State Building Ownership Authority Lease Revenue Refunding Bonds TOB Series 1998C 4.94%, 01/07/01 9,695 9,695 Par Value -------- ---------- Utah State Facilities System Revenue Refunding Bonds TOB Series 1998A 4.94%, 01/07/01 $ 30,060 $ 30,060 ---------- 64,545 ---------- VIRGINIA -- 0.2% Fairfax County, Virginia Economic Development Authority Resource Recovery RB TOB Series 2000-A35 4.75%, 01/07/01 5,000 5,000 Norfolk, Virginia Package System Revenue Refunding Bond TOB 4.94%, 01/07/01 9,450 9,450 Virginia State Housing Development Authority Commonwealth Mortgage Bonds TOB Series 2000CC 4.75%, 01/07/01 8,200 8,200 ---------- 22,650 ---------- WASHINGTON-- 1.0% King County, Washington TOB Series 215 4.94%, 01/07/01 14,995 14,995 Port of Seattle, Washington Limited Tax GO TOB Series 235 5.04%, 01/07/01 6,425 6,425 Port of Seattle, Washington Special Facilities RB TOB Series 1999J 4.75%, 01/07/01 49,795 49,795 Port of Seattle, Washington TOBP (PA-759R) 4.99%, 01/07/01 5,100 5,100 Washington State GO TOB 4.94%, 01/07/01 13,380 13,380 Washington State GO TOB Series 2000S-4 4.94%, 01/07/01 8,000 8,000 ---------- 97,695 ---------- WISCONSIN -- 0.4% Southeast Wisconsin Professional Baseball Park District Sales Tax RB TOB Series 2000Y 4.70%, 01/07/01 5,000 5,000 Wisconsin Housing & Economic Development Authority Home Ownership RB TOB Series 1999R 4.96%, 01/07/01 19,350 19,350 56 Par Value -------- ---------- Wisconsin Housing & Economic Development Authority Home Ownership RB TOB Series 1999S 5.01%, 01/07/01 $ 13,240 $ 13,240 ---------- 37,590 ---------- TOTAL VARIABLE RATE TENDER OPTION BONDS (Cost $1,052,480) 1,052,480 ---------- TAX-EXEMPT COMMERCIAL PAPER -- 6.9% (c) COLORADO -- 0.1% Lower Colorado River Authority, Colorado TECP 4.20%, 04/12/01 10,500 10,500 ---------- DISTRICT OF COLUMBIA -- 0.4% Metropolitan Washigton, D.C. Airport Authority TECP 4.25%, 03/06/01 20,000 20,000 4.40%, 04/10/01 12,000 12,000 4.35%, 04/12/01 8,000 8,000 ---------- 40,000 ---------- FLORIDA -- 1.0% (f) Florida Local Government Finance Commission Pooled TECP Series A 4.40%, 03/15/01 10,000 10,000 Hillsborough County, Florida Capital Improvement TECP Series A 4.30%, 02/01/01 7,168 7,168 4.25%, 02/14/01 16,820 16,820 Orange County, Florida TECP 4.30%, 02/01/01 11,077 11,077 4.30%, 04/11/01 11,073 11,073 Pinellas County, Florida Education Facilities TECP 4.45%, 01/03/01 9,700 9,700 Sunshine State Governmental Finance Commission TECP 4.25%, 01/03/01 5,207 5,207 4.25%, 01/04/01 27,736 27,736 ---------- 98,781 ---------- Par Value -------- ---------- ILLINOIS -- 0.1% (f) Chicago, Illinois O'Hare International Airport TECP 4.30%, 02/05/01 $ 6,055 $ 6,055 ---------- INDIANA -- 0.0% (f) Purdue University, Indiana Dormatory System TECP 4.20%, 01/16/01 5,000 5,000 ---------- KENTUCKY -- 0.2% (f) Kentucky Higher Educational Student Loan TECP 4.35%, 01/18/01 15,000 15,000 ---------- LOUISIANA -- 1.0% Louisiana Adjustable Tender GO TECP (f) 4.30%, 02/05/01 8,800 8,800 4.25%, 03/06/01 9,980 9,980 Louisiana State Pollution Control Revenue Refunding Bonds TECP (St. James Parish/Texaco Project) Series 1988A 4.25%, 02/08/01 36,500 36,500 Louisiana State Pollution Control Revenue Refunding Bonds TECP (St. James Parish/Texaco Project) Series 1988B 4.25%, 02/08/01 44,030 44,030 ---------- 99,310 ---------- MICHIGAN -- 1.4% (f) Michigan State Building Authority TECP Series 2 4.25%, 01/25/01 9,980 9,980 4.35%, 01/25/01 85,000 85,000 4.40%, 03/01/01 40,000 40,000 ---------- 134,980 ---------- MINNESOTA-- 1.2% Minneapolis St. Paul, Minnesota Metropolitan Airports TECP 4.30%, 01/08/01 10,000 10,000 4.35%, 01/09/01 7,500 7,500 4.25%, 02/14/01 10,000 10,000 4.30%, 02/15/01 10,000 10,000 4.35%, 04/10/01 3,500 3,500 57 SCHWAB MUNICIPAL MONEY FUND SCHEDULE OF INVESTMENTS (in thousands) (continued) December 31, 2000 Par Value -------- ---------- Rochester, Minnesota Health Care Facilities RB TECP (Mayo Foundation Mayo Clinic Project) Series 1992 4.30%, 02/05/01 $ 21,500 $ 21,500 Rochester, Minnesota Health Care Facilities RB TECP (Mayo Foundation Mayo Clinic Project) Series 2000A (f) 4.30%, 02/05/01 47,700 47,700 Rochester, Minnesota Health Care Facilities RB TECP (Mayo Foundation Mayo Clinic Project) Series 2000B (f) 4.30%, 01/03/01 9,000 9,000 ---------- 119,200 ---------- NEVADA -- 0.4% (f) Las Vegas Valley, Nevada Water District GO TECP Series A 4.30%, 02/05/01 40,000 40,000 ---------- OKLAHOMA -- 0.2% Oklahoma City, Oklahoma Industrial Cultural Facilities Trust Health Care TECP Series 1998B 4.25%, 03/07/01 17,000 17,000 ---------- PENNSYLVANIA -- 0.8% (f) Clarion County, Pennsylvania IDA Energy Development RB TECP (Piney Creek Project) 4.45%, 01/11/01 8,300 8,300 Montgomery County, Pennsylvania GO TECP 4.40%, 01/08/01 56,660 56,660 Philadelphia, Pennsylvania Gas TECP 4.25%, 03/07/01 12,000 12,000 ---------- 76,960 ---------- SOUTH CAROLINA -- 0.1% South Carolina Public Service Authority TECP 4.30%, 04/05/01 5,000 5,000 ---------- TOTAL TAX-EXEMPT COMMERCIAL PAPER (Cost $667,786) 667,786 ---------- Par Value -------- ---------- TAX & REVENUE ANTICIPATION NOTES -- 6.0% (c) KENTUCKY -- 0.5% Kentucky Asset Liability Common General Fund Revenue TRAN Series 2000A 4.32%, 06/27/01 $ 25,000 $ 25,107 4.54%, 06/27/01 25,000 25,082 ---------- 50,189 ---------- MISSOURI -- 0.2% St Louis, Missouri General Fund TRAN 4.58%, 06/28/01 21,000 21,066 ---------- NEW MEXICO -- 1.0% New Mexico State TRAN Series 2000A 4.15%, 06/29/01 100,000 100,409 ---------- PENNSYLVANIA -- 0.2% Philadelphia, Pennsylvania TRAN Series 2000A 4.36%, 06/29/01 14,000 14,042 ---------- TEXAS -- 4.0% Texas State TRAN 4.18%, 08/31/01 500 503 4.20%, 08/31/01 13,790 13,878 4.23%, 08/31/01 1,630 1,640 4.25%, 08/31/01 21,000 21,133 4.27%, 08/31/01 200,000 201,245 4.28%, 08/31/01 140,000 140,863 4.31%, 08/31/01 1,000 1,006 4.32%, 08/31/01 6,400 6,437 4.34%, 08/31/01 2,000 2,011 ---------- 388,716 ---------- WASHINGTON -- 0.1% Spokane, Washington General Fund GO TRAN 4.25%, 04/02/01 5,500 5,506 ---------- TOTAL TAX & REVENUE ANTICIPATION NOTES (Cost $579,928) 579,928 ---------- 58 Par Value -------- ---------- MANDATORY PUT BONDS -- 5.1% (c) CALIFORNIA -- 1.7% (f) California Higher Education Loan Authority Student Loan RB Series 1987C 4.72%, 06/01/01 $ 70,000 $ 70,000 California Higher Education Loan Authority Student Loan RB Series 1992A-2-6 4.30%, 01/07/01 9,675 9,675 California Higher Education Loan Authority Student Loan RB Series 1992A-3 4.30%, 01/07/01 44,900 44,900 California Higher Education Loan Authority Student Loan RB Series 1992A-4 4.35%, 01/07/01 8,725 8,725 California Higher Education Loan Authority Student Loan RB Series 1992D-1 4.35%, 01/07/01 13,600 13,600 California Higher Education Loan Authority Student Loan RB Series 1992D-2 4.35%, 01/07/01 11,500 11,500 California Higher Education Loan Authority Student Loan RB Series 1992D-4 4.35%, 01/07/01 5,150 5,150 ---------- 163,550 ---------- IDAHO -- 0.1% Custer County, Idaho Pollution Control RB (Amoco Project) Series 1983 4.35%, 04/01/01 7,000 7,000 ---------- ILLINOIS -- 0.3% (f) Chicago, Illinois Tender Notes Series 2000A 4.23%, 10/25/01 28,500 28,500 Orland Park, Illinois IDRB (Orland Properties Project) 4.45%, 01/07/01 980 980 ---------- 29,480 ---------- Par Value -------- ---------- NEW JERSEY -- 0.1% (f) New Jersey State Higher Education Assistance Authority Student Loan RB Series 1999B 4.75%, 06/01/01 $ 12,000 $ 12,000 ---------- NEW YORK -- 0.4% (f) New York City, New York Transit Cultural Resource RB (American Museum of Natural History Project) Series 1999B 4.50%, 07/01/01 12,000 12,000 New York State GO Series 2000A 4.34%, 02/08/01 22,000 22,000 ---------- 34,000 ---------- RHODE ISLAND -- 0.2% (f) Rhode Island State Student Loan Authority RB 4.80%, 06/01/01 19,000 19,000 ---------- TEXAS -- 2.3% (f) Greater East Texas Higher Education Authority Student Loan RB Series 1992A 4.97%, 01/04/01 32,500 32,500 Greater East Texas Higher Education Authority Student Loan RB Series 1992B 4.50%, 07/03/01 14,000 14,000 Greater East Texas Higher Education Authority Student Loan RB Series 1993A 4.50%, 05/01/01 48,150 48,150 Greater East Texas Higher Education Authority Student Loan RB Series 1995 4.50%, 05/01/01 40,000 40,000 Greater East Texas Higher Education Authority Student Loan RB Series 1995A 4.50%, 05/01/01 11,700 11,700 Greater East Texas Student Loan Corp. Student Loan RB Series 1996A 4.28%, 03/01/01 56,000 56,000 San Jacinto, Texas College District GO 3.96%, 01/18/01 20,000 20,002 ---------- 222,352 ---------- TOTAL MANDATORY PUT BONDS (Cost $487,382) 487,382 ---------- 59 SCHWAB MUNICIPAL MONEY FUND SCHEDULE OF INVESTMENTS (in thousands) (continued) December 31, 2000 Par Value -------- ---------- REVENUE BONDS -- 3.7% (c) ARIZONA -- 0.3% Arizona State Agriculture Improvement Power District Electric Systems Revenue Refunding Bonds (Salt River Project) Series 1997A 4.30%, 01/01/01 $ 5,000 $ 5,000 Phoenix, Arizona Civic Improvement Corp. Municipal Facilities Excise Tax RB (f) 4.35%, 07/01/01 3,000 3,013 Tucson, Arizona Water RB Series 1991D (f) 4.25%, 07/01/01 15,250 15,757 ---------- 23,770 ---------- CALIFORNIA -- 0.5% (f) California Higher Education Loan Authority Student Loan Revenue Refunding Bonds Series 1987C-1 4.45%, 07/01/01 50,000 50,000 ---------- COLORADO -- 0.1% (f) Palimino Park, Colorado Public Improvements Corp. Asset Lien RB 4.70%, 01/03/01 12,680 12,680 ---------- DISTRICT OF COLUMBIA-- 0.0% District of Columbia Hospital RB (Washington Hospital Center Corp.) Series 1990A 4.25%, 01/01/01 2,750 2,805 ---------- FLORIDA -- 0.1% Florida State Board of Education Lottery RB Series 2000A (f) 4.60%, 07/01/01 1,065 1,067 Florida State Board of Education Lottery RB Series 2000C (f) 4.30%, 07/01/01 4,585 4,606 Pinellas County, Florida HFA S/F Housing RB (Multi-County Program) Series 2000A-3 4.10%, 02/01/01 5,770 5,770 ---------- 11,443 ---------- Par Value -------- ---------- GEORGIA -- 0.0% (f) Dalton, Georgia Utilities RB 4.15%, 01/01/01 $ 2,145 $ 2,145 ---------- HAWAII-- 0.0% (f) Hawaii State Harbor System RB Series 2000A 4.43%, 07/01/01 2,090 2,098 ---------- IOWA -- 0.1% (f) Woodbury County, Iowa Hospital Facilities RB (St. Lukes Reginal Medical Center Project) 4.24%, 03/01/01 4,000 4,095 ---------- MAINE -- 0.2% Maine State HFA Mortgage Purchase RB Series 2000E-2 4.38%, 11/14/01 16,500 16,500 ---------- MASSACHUSETTS -- 0.4% Massachusetts Bay Transit Authority General Transit System RB Series 1991A 4.03%, 03/01/01 19,600 20,081 Massachusetts State Health & Educational Facilties Authority RB (Brigham & Womens Hospital Issue) Series 1991D 6.27%, 07/01/01 15,000 15,468 ---------- 35,549 ---------- MICHIGAN -- 0.1% Detroit, Michigan Economic Development Corp. Resource Recovery RB Series 1991A (f) 4.43%, 05/01/01 3,150 3,171 Royal Oak, Michigan Hospital Finance Authority (Beaumont Hospital) RB Series 1991D 4.24%, 01/01/01 2,000 2,040 ---------- 5,211 ---------- MISSOURI -- 0.0% (f) St. Louis, Missouri Municipal Finance Corp. Leasehold RB (City Justice Center) Series 2000A 4.15%, 02/15/01 615 615 ---------- 60 Par Value -------- ---------- MONTANA -- 0.0% (f) Kansas City, Montana Airport General Improvement Revenue Refunding Bond Series 1999A 4.25%, 09/01/01 $ 3,670 $ 3,688 ---------- NEVADA -- 0.0% (f) Clark County, Nevada Passenger Facilities Charge RB (Las Vegas Macarran International Airport) Series 1995A 4.75%, 07/01/01 2,000 2,016 ---------- NEW JERSEY -- 0.0% New Jersey Health Care Facilities Financing Authority Revenue Refunding Bonds (Kennedy Health Systems) Series 1998B (f) 4.62%, 07/01/01 1,135 1,140 New Jersey State Transportation Trust Fund Authority Transportation System RB Series 1992A 4.60%, 06/15/01 1,780 1,791 ---------- 2,931 ---------- NEW YORK -- 0.0% (f) New York State Dormitory Authority Hospital Insured Motgage RB Series 1997A 4.33%, 02/15/01 3,125 3,127 ---------- NORTH DAKOTA -- 0.2% North Dakota State HFA Housing Finance RB Series 2000B 4.25%, 03/01/01 15,000 15,000 ---------- OREGON -- 0.3% Oregon State Housing & Community Services Department S/F Mortgage RB Series 2000G 4.50%, 06/21/01 30,500 30,500 ---------- PENNSYLVANIA -- 0.0% (f) Pennsylvania State Higher Educational Facilities Authority RB Series 2000S 4.52%, 06/15/01 2,165 2,170 ---------- Par Value -------- ---------- SOUTH DAKOTA -- 0.5% South Dakota HDA Homeownership Mortgage RB Series 2000C 4.10%, 02/01/01 $ 40,000 $ 40,000 South Dakota HDA Homeownership Mortgage RB Series 2000K 4.40%, 11/08/01 6,400 6,400 ---------- 46,400 ---------- TEXAS -- 0.1% Austin, Texas Utility System Revenue Refunding Bonds (f) 4.30%, 05/15/01 3,500 3,599 Forth Worth, Texas Water & Sewer Revenue Refunding & Improvement Bonds 4.24%, 02/15/01 2,145 2,147 ---------- 5,746 ---------- VERMONT -- 0.2% (f) Vermont Housing Finance Agency S/F Housing RB Series 2000-13B 4.35%, 09/13/01 17,500 17,500 ---------- WASHINGTON -- 0.6% Washington State Housing Finance Commission S/F Housing Program RB Series 1A-S (f) 4.00%, 02/01/01 3,175 3,175 Washington State Public Power Supply System Revenue Refunding Bond (Nuclear Project No. 2) Series 1990C (f) 4.10%, 01/01/01 7,350 7,497 4.15%, 01/01/01 3,200 3,264 4.34%, 07/01/01 10,000 10,128 Washington State Public Power Supply System Revenue Refunding Bond (Nuclear Project No. 2) Series 1991A 4.39%, 07/01/01 20,300 20,457 Washington State Public Power Supply System Revenue Refunding Bond (Nuclear Project No. 2) Series 1997A 4.35%, 07/01/01 14,630 14,673 ---------- 59,194 ---------- 61 SCHWAB MUNICIPAL MONEY FUND SCHEDULE OF INVESTMENTS (in thousands) (continued) December 31, 2000 Par Value -------- ---------- WISCONSIN -- 0.0% (f) Wisconsin State Health & Educational Facilities Authority RB (Gundersen Clinic La Crosse, Inc.) 4.42%, 12/01/01 $ 2,400 $ 2,423 ---------- TOTAL REVENUE BONDS (Cost $357,606) 357,606 ---------- FIXED RATE TENDER OPTION BONDS -- 3.3% (c)(e) CONNECTICUT -- 0.3% (f) Connecticut HFA Housing Mortgage Finance Program TOB Series 1998T 4.25%, 07/12/01 12,995 12,995 Macon, Connecticut HFA TOB Series 1999D 4.43%, 01/25/01 19,995 19,995 ---------- 32,990 ---------- HAWAII -- 0.3% (f) Hawaii Airport System RB TOBP (PT-487) 4.49%, 05/17/01 14,765 14,765 Hawaii State Housing Finance & Development Corp. TOB 4.60%, 06/14/01 12,260 12,260 ---------- 27,025 ---------- INDIANA -- 0.1% (f) Indiana State Housing Finance Authority S/F Mortgage RB TOB Series 2000P 4.38%, 02/22/01 10,945 10,945 ---------- KENTUCKY -- 0.2% (f) Kentucky Corporate Housing Revenue TOB Series 1998W 4.60%, 06/14/01 19,320 19,320 ---------- MARYLAND -- 0.3% (f) Maryland State Community Housing Development Administration Department TOB Series 1999G 4.55%, 04/12/01 32,335 32,335 ---------- MASSACHUSETTS -- 0.1% (f) Massachusetts Bay Transportation Authority TOBP (PT-1218) 4.20%, 01/18/01 5,000 5,000 ---------- Par Value -------- ---------- NEBRASKA -- 0.2% Nebraska Investment Finance Authority S/F Housing Revenue TOB Series 1998X (f) 4.45%, 05/10/01 $ 10,825 $ 10,825 Nebraska Public Power District RB TOBP (PT-1176) Series 1998B 4.40%, 06/07/01 9,050 9,050 ---------- 19,875 ---------- NEW HAMPSHIRE -- 0.1% (f) New Hampshire State HFA S/F Revenue TOB Series 1998U 4.60%, 06/14/01 9,995 9,995 ---------- NEW JERSEY -- 0.0% (f) New Jersey State Housing & Mortgage Finance Agency Revenue TOBP (PT-285) 4.45%, 08/09/01 1,000 1,000 ---------- NEW YORK -- 0.2% (f) Macon, New York State Managment Agency RB TOB Series 1999H 4.45%, 04/05/01 14,995 14,995 New York State Mortgage Agency RB TOB Series 2000K 4.27%, 02/22/01 8,060 8,060 ---------- 23,055 ---------- PENNSYLVANIA -- 0.3% (f) Pennsylvania HFA S/F Mortgage RB TOBP (PT-119A) Series 1997 4.40%, 05/10/01 8,844 8,844 Pennsylvania HFA TOB Series 1998Y 4.40%, 05/10/01 10,000 10,000 Philadelphia, Pennsylvania IDA Airport RB TOB Series 1998A 4.45%, 03/15/01 14,710 14,710 ---------- 33,554 ---------- RHODE ISLAND -- 0.2% (f) Rhode Island Housing & Mortgage Finance Corp. TOB Series 1999E 4.30%, 01/25/01 19,020 19,020 ---------- 62 Par Value -------- ---------- TEXAS -- 0.3% (f) Southeast Texas Housing Finance Corp. TOBP (PT-165) 4.50%, 05/10/01 $ 12,200 $ 12,200 Southeast Texas Housing Finance Corp. TOBP (PT-193) 4.45%, 04/26/01 12,440 12,440 ---------- 24,640 ---------- UTAH -- 0.2% (f) Utah State TOBP (PT-429) 4.50%, 06/14/01 15,000 15,000 ---------- WASHINGTON -- 0.2% Seattle Washington TOBP (PT-1167) (f) 4.30%, 02/15/01 6,740 6,740 Washington State Public Power Supply System Revenue Refunding Bonds (Nuclear Project No. 2) TOBP (PT-432) 4.49%, 04/18/01 11,395 11,395 ---------- 18,135 ---------- WISCONSIN -- 0.1% (f) Wisconsin Housing & Economic Development Authority Home Ownership TOBP (PT-194) 4.45%, 04/26/01 14,395 14,395 ---------- WYOMING -- 0.2% (f) Wyoming Community Development Authority Housing RB TOB 4.50%, 05/24/01 15,210 15,210 ---------- TOTAL FIXED RATE TENDER OPTION BONDS (Cost $321,494) 321,494 ---------- Par Value -------- ---------- OPTIONAL PUT BONDS -- 1.4% (c)(f) MONTANA -- 0.6% Montana State Board of Investments Resource Recovery RB (Colstrip Project) 4.85%, 01/07/01 $ 60,800 $ 60,800 ---------- TEXAS -- 0.8% Grapevine, Texas Industrial Development Corp. Airport RB (Singer County Project) 4.30%, 04/01/01 18,975 18,975 Greater East Texas Higher Education Authority Student Loan RB Series 1992B 5.02%, 01/04/01 26,800 26,800 Greater East Texas Higher Education Authority Student Loan RB Series 1993B1 4.22%, 02/01/01 18,000 18,000 Greater East Texas Higher Education Authority Student Loan RB Series 1995B 4.50%, 07/01/01 10,000 10,000 ---------- 73,775 ---------- TOTAL OPTIONAL PUT BONDS (Cost $134,575) 134,575 ---------- REVENUE ANTICIPATION NOTES -- 1.3% (c) MICHIGAN -- 0.6% Michigan Municipal Bond Authority RAN Series 2000C-1 4.30%, 08/23/01 56,000 56,241 ---------- NEW YORK-- 0.7% Nassau County, NY RAN Series 2000B 4.48%, 03/20/01 15,000 15,047 Nassau County, NY RAN Series 2000D 4.48%, 04/12/01 2,900 2,912 New York City, NY RAN Series 2000A 4.25%, 04/12/01 50,000 50,103 ---------- 68,062 ---------- TOTAL REVENUE ANTICIPATION NOTES (Cost $124,303) 124,303 ---------- 63 SCHWAB MUNICIPAL MONEY FUND SCHEDULE OF INVESTMENTS (in thousands) (continued) December 31, 2000 Par Value -------- ---------- GENERAL OBLIGATIONS -- 1.0% (c) ALABAMA -- 0.0% (f) Mobile, Alabama Refunding GO Warrants 4.25%, 02/15/01 $ 1,300 $ 1,302 ---------- FLORIDA -- 0.1% Florida State Board of Education Capital Outlay GO Series 1998A 4.27%, 01/01/01 5,650 5,650 Florida State Board of Education Capital Outlay GO Series 1999A 4.07%, 01/01/01 2,890 2,890 ---------- 8,540 ---------- GEORGIA -- 0.1% Georgia State GO Series 1993A 4.24%, 01/01/01 1,935 1,935 Georgia State GO Series 1998B 4.30%, 07/01/01 5,000 5,035 ---------- 6,970 ---------- HAWAII -- 0.1% Hawaii State GO 4.25%, 02/01/01 6,000 6,018 Hawaii State Refunding GO Series 1997C (f) 4.35%, 09/01/01 5,000 5,009 ---------- 11,027 ---------- ILLINOIS-- 0.0% Illinois State GO Series 2000 4.28%, 12/01/01 3,600 3,615 ---------- KANSAS-- 0.1% Topeka, Kansas GO Series 2000A 4.35%, 08/15/01 6,000 6,041 ---------- MINNESOTA -- 0.2% Minneapolis Saint Paul, Minnesota Metropolitan Airports Commission GO Series 1992-8 4.20%, 01/01/01 2,000 2,000 Minnesota State GO 4.27%, 08/01/01 12,250 12,283 ---------- 14,283 ---------- Par Value -------- ---------- NEW YORK -- 0.0% (f) Nassau County, New York General Improvement GO Series 1999C 4.32%, 01/01/01 $ 3,000 $ 3,000 ---------- PENNSYLVANIA -- 0.0% Pennsylvania State GO Series 2000 4.00%, 01/15/01 1,305 1,306 ---------- TENNESSEE -- 0.2% Tennessee State GO Series 1996A 4.22%, 05/01/01 2,230 2,236 Tennessee State GO Series 2000A 4.19%, 03/01/01 7,500 7,509 Tennessee State Refunding GO Series 1996B 4.22%, 05/01/01 12,360 12,391 ---------- 22,136 ---------- TEXAS -- 0.1% Texas State College Student Loan GO 4.40%, 08/01/01 5,000 5,025 ---------- WASHINGTON -- 0.0% Port of Seattle, Washington GO Series 2000B 4.10%, 12/01/01 2,100 2,117 ---------- VIRGINIA -- 0.1% Richmond, Virginia Refunding Public Improvement GO Series 1993A 4.22%, 01/15/01 5,090 5,091 ---------- WISCONSIN -- 0.0% Wisconsin State GO Series 1995C 4.25%, 05/01/01 2,000 2,005 Wisconsin State Refunding GO 4.30%, 05/01/01 2,000 2,009 ---------- 4,014 ---------- TOTAL GENERAL OBLIGATIONS (Cost $94,467) 94,467 ---------- 64 Par Value -------- ---------- REVENUE ANTICIPATION WARRANTS -- 1.0% (c)(f) Iowa School Corps. Revenue Anticipation Warrants (Iowa School Cash Anticipation Progam) 4.05%, 02/01/01 $ 13,700 $ 13,708 Iowa School Corps. Revenue Anticipation Warrants (Iowa School Cash Anticipation Progam) Series 2000A 4.49%, 06/22/01 80,145 80,510 ---------- 94,218 ---------- TOTAL REVENUE ANTICIPATION WARRANTS (Cost $94,218) 94,218 ---------- TAX ANTICIPATION NOTES -- 0.5% (c) FLORIDA -- 0.3% Broward County, Florida School District TAN 4.26%, 09/11/01 20,225 20,324 Seminole County, Florida School District TAN 4.30%, 08/01/01 10,000 10,025 ---------- 30,349 ---------- NEW YORK -- 0.2% Sachem, New York Central School District TAN 4.34%, 06/28/01 16,000 16,050 ---------- TOTAL TAX ANTICIPATION NOTES (Cost $46,399) 46,399 ---------- BOND ANTICIPATION NOTES -- 0.4% (c) MASSACHUSETTS -- 0.1% Reading, Massachusetts BAN 3.98%, 01/11/01 7,350 7,351 ---------- NEW JERSEY -- 0.1% East Brunswick Township, New Jersey BAN 3.87%, 01/05/01 11,800 11,800 ---------- Par Value -------- ---------- NEW YORK -- 0.2% Broome County, New York BAN 4.22%, 04/03/01 $ 6,755 $ 6,763 4.23%, 04/03/01 4,625 4,631 4.25%, 04/03/01 4,000 4,005 Sachem New York Central School District, Holbrook BAN 3.76%, 07/26/01 8,880 8,910 ---------- 24,309 ---------- TOTAL BOND ANTICIPATION NOTES (Cost $43,460) 43,460 ---------- CERTIFICATES OF PARTICIPATION -- 0.1% (c) York County, South Carolina Public Corp. COP 4.43%, 06/01/01 12,000 12,384 ---------- TOTAL CERTIFICATES OF PARTICIPATION (Cost $12,384) 12,384 ---------- OTHER INVESTMENT COMPANIES -- 0.1% (g) Provident Institutional Funds - Muni Fund Portfolio 4.20% 11,043 11,043 ---------- TOTAL OTHER INVESTMENT COMPANIES (Cost $11,043) 11,043 ---------- TOTAL INVESTMENTS -- 99.3% (Cost $9,628,293) 9,628,293 ---------- OTHER ASSETS AND LIABILITIES -- 0.7% Other assets 146,237 Liabilities (75,997) ---------- 70,240 ---------- TOTAL NET ASSETS -- 100.0% $9,698,533 ========== SEE ACCOMPANYING NOTES TO SCHEDULES OF INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. 65 SCHWAB CALIFORNIA MUNICIPAL MONEY FUND SCHEDULE OF INVESTMENTS (in thousands) December 31, 2000 Par Value -------- ---------- VARIABLE RATE OBLIGATIONS -- 44.4% (b)(f) ABAG Financing Authority for Non-Profit Corporations, California COP (Bentley School) 4.40%, 01/07/01 $ 5,230 $ 5,230 ABAG Financing Authority for Non-Profit Corporations, California COP (Harker School Project) 4.35%, 01/07/01 5,300 5,300 ABAG Financing Authority for Non-Profit Corporations, California COP (Lucile Salter Packard Project) 4.15%, 01/07/01 4,800 4,800 ABAG Financing Authority for Non-Profit Corporations, California M/F Housing RB (Architect Building Project) 4.20%, 01/07/01 3,200 3,200 ABAG Financing Authority for Non-Profit Corporations, California M/F Housing RB (Miramar Apartments) 4.10%, 01/07/01 29,000 29,000 ABAG Financing Authority for Non-Profit Corporations, California M/F Housing RB (Mountain View Apartments) Series 1997A 4.65%, 01/07/01 3,295 3,295 ABAG Financing Authority for Non-Profit Corporations, California M/F Housing RB (Vintage Chateau) 4.70%, 01/07/01 11,000 11,000 Alameda County, California IDA RB (Malmberg Engineering, Inc. Project) 4.50%, 01/07/01 2,980 2,980 Alameda County, California IDRB (Aitchison Family Project) Series 1993A 4.35%, 01/07/01 2,720 2,720 Alameda County, California IDRB (Association Heat & Control Project) 4.35%, 01/07/01 810 810 Alameda County, California IDRB (JMS Family Partners) Series A 4.35%, 01/07/01 1,000 1,000 Alameda County, California IDRB (Scientific Technology Project) Series 1994A 4.40%, 01/07/01 2,500 2,500 Par Value -------- ---------- Anaheim, California COP (Anaheim Memorial Hospital Assoc. Project) 4.00%, 01/07/01 $ 5,970 $ 5,970 Anaheim, California COP (Police Facility Financing Project) 4.00%, 01/07/01 650 650 Anaheim, California Housing Authority M/F Housing RB (Casa Grande Apartments) Series 1997A 3.95%, 01/07/01 3,695 3,695 Anaheim, California Housing Authority M/F Housing RB (Park Vista Apartments) 4.10%, 01/07/01 8,000 8,000 Anaheim, California Housing Authority M/F Housing RB (Port Trinidad Apartments) Series 1997C 3.95%, 01/07/01 2,140 2,140 Anaheim, California Housing Authority M/F Housing RB (Sage Park Project) Series A 4.15%, 01/07/01 2,000 2,000 Anaheim, California Union High School District COP 4.00%, 01/07/01 5,500 5,500 Avalon, California Community Improvement Agency Tax Allocation RB 4.65%, 01/07/01 19,815 19,815 Burbank, California Redevelopment Agency M/F Housing RB 4.15%, 01/07/01 9,000 9,000 California Alternative Energy Source Financing Authority (GE Capital Corp. Arroyo Project) Series A 4.05%, 01/07/01 25,330 25,330 California Alternative Energy Source Financing Authority (GE Capital Corp. Arroyo Project) Series 1993B 3.95%, 01/07/01 12,260 12,260 California Economic Development Financing Authority (Lion Raisin Project) 4.20%, 01/07/01 1,800 1,800 California Education Facilities Authority (Chapman University) 4.25%, 01/07/01 5,000 5,000 California Education Facilities Authority (Life Chiropractic College West) 4.35%, 01/07/01 5,000 5,000 66 Par Value -------- ---------- California Education Facilities Authority (University of Judaism Project) Series A 4.10%, 01/07/01 $ 5,500 $ 5,500 California Education Facilities Authority RB (San Francisco Conservatory) 4.15%, 01/07/01 3,000 3,000 California Education Facilities Authority RB (University of San Francisco) 4.15%, 01/07/01 13,500 13,500 California Finance Authority Pollution Control RB (Pacific Gas & Electric Company) 5.80%, 01/01/01 23,550 23,550 California Health Facilities Financing Authority RB (California Prebyterian Homes) Series 1998 4.30%, 01/07/01 31,000 31,000 California Health Facilities Financing Authority RB (Catholic Health Care West) Series 1988B 3.90%, 01/07/01 12,300 12,300 California Health Facilities Financing Authority RB (Catholic Health Care) Series 1988C 3.90%, 01/07/01 10,000 10,000 California Health Facilities Financing Authority RB (Children's Hospital Project) Series 1991 3.90%, 01/07/01 17,700 17,700 California Health Facilities Financing Authority RB (Scripps Memorial Hospital) Series 1991B 4.15%, 01/07/01 400 400 California HFA Home Mortgage RB Series 1999J-1 4.20%, 01/07/01 34,555 34,555 California HFA Home Mortgage RB Series 1999J-2 4.20%, 01/07/01 29,970 29,970 California HFA Home Mortgage RB Series 2000M 4.20%, 01/07/01 32,665 32,665 California HFA Home Mortgage RB Series 2000N 4.20%, 01/07/01 36,000 36,000 California HFA RB Series G 4.10%, 01/07/01 50,000 50,000 Par Value -------- ---------- California Infrastructure & Economic Development Bank IDRB (American Derosa-Lamparts) 4.40%, 01/07/01 $ 4,950 $ 4,950 California Infrastructure & Economic Development Bank IDRB (Fairmont Sign Co. Project) Series 2000A 5.05%, 01/07/01 4,250 4,250 California Infrastructure & Economic Development Bank IDRB (Independent System Operation Corporation Project) Series A 4.00%, 01/07/01 4,200 4,200 California Infrastructure & Economic Development Bank IDRB (Lafayette Textile Industries Project) 4.35%, 01/07/01 3,470 3,470 California Infrastructure & Economic Development Bank IDRB (Nelson Name Plate Co. Project) 4.20%, 01/07/01 3,850 3,850 California Infrastructure & Economic Development Bank IDRB (Roller Bearing Co. of America Santa Ana Project) 4.35%, 01/07/01 2,400 2,400 California Pollution Control Financing Authority Revenue Refunding Bonds (Pacific Gas & Electric Co. Project) Series 1996D 5.70%, 01/01/01 8,200 8,200 California Pollution Control Financing Authority RB (Green Team of San Jose Project) 4.60%, 01/07/01 2,800 2,800 California Pollution Control Financing Authority RB (Pacific Gas & Electric Co. Project) Series 1996B 4.05%, 01/07/01 38,000 38,000 California Pollution Control Financing Authority RB (Pacific Gas & Electric Co. Project) Series 1996E 5.85%, 01/01/01 41,200 41,200 California Pollution Control Financing Authority RB (Pacific Gas & Electric Co. Project) Series 1996F 4.70%, 01/01/01 40,200 40,200 67 SCHWAB CALIFORNIA MUNICIPAL MONEY FUND SCHEDULE OF INVESTMENTS (in thousands) (continued) December 31, 2000 Par Value -------- ---------- California Pollution Control Financing Authority RB (Pacific Gas & Electric Co. Project) Series A 7.00%, 01/07/01 $162,100 $ 162,100 California Pollution Control Financing Authority RB (Pacific Gas & Electric Co. Project) Series B 5.80%, 01/01/01 13,500 13,500 California Pollution Control Financing Authority RB (Wadham Energy Project) Series 1987B 4.90%, 01/07/01 700 700 California Pollution Control Financing Authority Resource Recovery RB (Sanger Project) Series 1990A 4.10%, 01/07/01 2,800 2,800 California Pollution Control Financing Authority Resource Recovery Solid Waste Disposal RB (Atlas Disposal Industrial Project) Series 1999A 4.65%, 01/07/01 3,000 3,000 California Pollution Control Financing Authority Resource Recovery Solid Waste Disposal RB (Bay Leasing, Inc. Project) Series 1999A 4.60%, 01/07/01 9,675 9,675 California Pollution Control Financing Authority Solid Waste Disposal RB (Blue Line Transfer, Inc. Project) 4.60%, 01/07/01 5,000 5,000 California Pollution Control Financing Authority Solid Waste Disposal RB (Alameda County Industries Project) Series 2000A 4.60%, 01/07/01 5,155 5,155 California Pollution Control Financing Authority Solid Waste Disposal RB (Allan Co. Project) 4.60%, 01/07/01 975 975 California Pollution Control Financing Authority Solid Waste Disposal RB (Athens Disposal Co. Project) Series 1995A 4.60%, 01/07/01 17,110 17,110 California Pollution Control Financing Authority Solid Waste Disposal RB (Athens Disposal Co. Project) Series 1999A 4.60%, 01/07/01 8,000 8,000 Par Value -------- ---------- California Pollution Control Financing Authority Solid Waste Disposal RB (BLT Enterprises) Series 1999A 4.60%, 01/07/01 $ 9,000 $ 9,000 California Pollution Control Financing Authority Solid Waste Disposal RB (Burrtec Waste Industries Project) Series 1995A 4.70%, 01/07/01 2,785 2,785 California Pollution Control Financing Authority Solid Waste Disposal RB (Calsan, Inc. Project) Series 1999B 4.60%, 01/07/01 4,375 4,375 California Pollution Control Financing Authority Solid Waste Disposal RB (Cold Cyn Landfill Project) 4.60%, 01/07/01 6,540 6,540 California Pollution Control Financing Authority Solid Waste Disposal RB (Colmac Energy Project) Series 1990A 4.10%, 01/07/01 11,430 11,430 California Pollution Control Financing Authority Solid Waste Disposal RB (Contra Costa Services) Series 1995A 4.60%, 01/07/01 3,300 3,300 California Pollution Control Financing Authority Solid Waste Disposal RB (Edco Disposal Corp. Project) Series 1996A 4.60%, 01/07/01 15,500 15,500 California Pollution Control Financing Authority Solid Waste Disposal RB (Equity Stanislaus Project) 3.85%, 01/01/01 14,445 14,445 California Pollution Control Financing Authority Solid Waste Disposal RB (Greenwaste of Tehama Project) Series A 4.65%, 01/07/01 3,435 3,435 California Pollution Control Financing Authority Solid Waste Disposal RB (Madera Disposable Project) Series A 4.65%, 01/07/01 1,800 1,800 California Pollution Control Financing Authority Solid Waste Disposal RB (Marborg Industries Project) Series A 4.60%, 01/07/01 5,425 5,425 68 Par Value -------- ---------- California Pollution Control Financing Authority Solid Waste Disposal RB (Met Recycling Corporation Project) Series B 4.65%, 01/07/01 $ 5,340 $ 5,340 California Pollution Control Financing Authority Solid Waste Disposal RB (Santa Clara Project) 4.65%, 01/07/01 4,000 4,000 California Pollution Control Financing Authority Solid Waste Disposal RB (Shell Martinez Refining Project) Series 1994A 3.70%, 01/01/01 4,400 4,400 California Pollution Control Financing Authority Solid Waste Disposal RB (Shell Martinez Refining Project) Series 1996A 3.70%, 01/07/01 19,500 19,500 California Pollution Control Financing Authority Solid Waste Disposal RB (Shell Martinez Refining Project) Series 1996B 3.70%, 01/07/01 4,300 4,300 California Pollution Control Financing Authority Solid Waste Disposal RB (Solag Disposal Project) Series 1997A 4.65%, 01/07/01 3,200 3,200 California Pollution Control Financing Authority Solid Waste Disposal RB (Sun Valley Paper Project) 4.60%, 01/07/01 1,200 1,200 California Pollution Control Financing Authority Solid Waste Disposal RB (Talco Plastics Project) Series 1997A 4.35%, 01/07/01 4,150 4,150 California Pollution Control Financing Authority Solid Waste Disposal RB (Taormina Industries, Inc. Project) Series 1994B 4.35%, 01/07/01 2,225 2,225 California Pollution Control Financing Authority Solid Waste Disposal RB (Tri Community Recycle Project) 4.40%, 01/07/01 2,455 2,455 California Pollution Control Financing Authority Solid Waste Disposal RB (West Valley Project) Series 1997A 4.70%, 01/07/01 8,870 8,870 Par Value -------- ---------- California Pollution Control Financing Authority Solid Waste Disposal RB (Zanker Road Landfill Project) Series C 4.65%, 01/07/01 $ 6,370 $ 6,370 California Pollution Control Financing Authority Solid Waste Disposal RB 4.70%, 01/07/01 8,830 8,830 California Pollution Control Financing Authority Solid Waste Disposal RB Series A 4.15%, 01/07/01 10,000 10,000 California Public Power Agency Subordinate Lien (San Juan Project) Series 1997D 4.05%, 01/07/01 2,500 2,500 California School Facilities Financing Corp. COP ( Capital Improvement Financing Project) Series 1999D 4.10%, 01/07/01 10,825 10,825 California State Economic Development Financing Authority (Mannesmann Dematic Corp.) 4.95%, 01/07/01 3,200 3,200 California State Economic Development Financing Authority IDRB (Calco Project) 4.25%, 01/07/01 880 880 California State Economic Development Financing Authority IDRB (Gaiser Tool Project) 4.35%, 01/07/01 2,695 2,695 California State Economic Development Financing Authority IDRB (Mercury Air Group) 4.20%, 01/07/01 15,900 15,900 California State Economic Development Financing Authority IDRB (Serra Microchassis Project) 4.00%, 01/01/01 1,220 1,220 California State Economic Development Financing Authority IDRB (Serra Microchassis Project) Series 1997A 4.00%, 01/01/01 2,150 2,150 California State Economic Development Financing Authority RB (Buck Center for Aging Project) 4.10%, 01/07/01 50,300 50,300 69 SCHWAB CALIFORNIA MUNICIPAL MONEY FUND SCHEDULE OF INVESTMENTS (in thousands) (continued) December 31, 2000 Par Value -------- ---------- California State Economic Development Financing Authority RB (Costa Macoroni Project) 4.35%, 01/07/01 $ 3,350 $ 3,350 California State Economic Development Financing Authority RB (Killion Industry's Project) 4.90%, 01/07/01 6,300 6,300 California Statewide Community Development Authority (Dr. Nichols Pistachio) Series C 4.25%, 01/07/01 800 800 California Statewide Community Development Authority (Elder Care Alliance) 4.30%, 01/07/01 12,760 12,760 California Statewide Community Development Authority Solid Waste Facilities (Disposal Waste Services) 4.20%, 01/07/01 25,000 25,000 California Statewide Community Development Authority COP (Nort California Retired Officers) 3.80%, 01/01/01 10,445 10,445 California Statewide Community Development Authority COP 4.25%, 01/07/01 7,485 7,485 California Statewide Community Development Authority IDRB (Biocol Investments, LP) Series 1997B 5.35%, 01/07/01 1,500 1,500 California Statewide Community Development Authority IDRB (Integrated Rolling Co. Project) Series 1999A 4.20%, 01/07/01 2,900 2,900 California Statewide Community Development Authority M/F Housing RB (Cypress Villa Apartments) Series F 4.15%, 01/07/01 4,725 4,725 California Statewide Community Development Authority M/F Housing RB (Emerald Gardens Apartements) Series E 4.15%, 01/07/01 7,320 7,320 Par Value -------- ---------- California Statewide Community Development Authority M/F Housing RB (Kimberly Woods Project) Series 1995B 4.10%, 01/07/01 $ 11,400 $ 11,400 California Statewide Community Development Authority M/F Housing RB (One Park Place) 4.05%, 01/07/01 2,038 2,038 California Statewide Community Development Authority M/F Housing RB (Park David Senior Apartments Project) Series 1999D 4.10%, 01/07/01 8,220 8,220 California Statewide Community Development Authority M/F Housing RB (Plaza Club Apartments) Series 1997A 4.13%, 01/07/01 9,790 9,790 California Statewide Community Development Authority RB (Japanese American Museum Project) Series 2000A 4.10%, 01/07/01 5,000 5,000 California Statewide Community Development Authority RB (Jewish Federation of Los Angeles) Series 2000A 4.10%, 01/07/01 11,500 11,500 California Statewide Community Development Corp. IDRB (13th I Associates Project) 5.35%, 01/07/01 4,880 4,880 California Statewide Community Development Corp. IDRB (Agricultural Products, Inc. Project) 5.35%, 01/07/01 1,335 1,335 California Statewide Community Development Corp. IDRB (Cowden Metal Stamping Project) 5.35%, 01/07/01 1,820 1,820 California Statewide Community Development Corp. IDRB (Drip In Irrigation Co. Project) 5.00%, 01/07/01 3,600 3,600 California Statewide Community Development Corp. IDRB (Flambeau Airmold Project) 5.00%, 01/07/01 2,400 2,400 70 Par Value -------- ---------- California Statewide Community Development Corp. IDRB (Industrial Dynamics Co. Project) 5.35%, 01/07/01 $ 3,840 $ 3,840 California Statewide Community Development Corp. IDRB (Pacific Handy Cutter Products Project) 5.35%, 01/07/01 435 435 California Statewide Community Development Corp. IDRB (The Diamond Foods Project) Series 1991 5.35%, 01/07/01 1,040 1,040 California Statewide Community Development Corp. IDRB Series 1998C 5.00%, 01/07/01 2,060 2,060 California Statewide Community Industrial Development Revenue Refunding Bonds (Golden Valley Project) Series A 5.00%, 01/07/01 1,680 1,680 California Statewide M/F Housing Authority RB (Woodsong Apartments) Series 1997B 3.95%, 01/07/01 3,427 3,427 Carlsbad, California M/F Housing Revenue Refunding Bonds COP (La Costa Apartment Project) Series 1993A 3.95%, 01/07/01 11,720 11,720 Concord, California M/F Housing Authority RB (California Hill Apartments) Series 1989A 4.15%, 01/07/01 6,750 6,750 Concord, California M/F Housing Mortgage RB (Bel Air Apartments Project) Series 1986A 4.20%, 01/07/01 3,000 3,000 Contra Costa County, California M/F Housing Mortgage RB (El Cerrito Project) Series A 4.20%, 01/07/01 980 980 Davis, California Community Facilities District Special Tax Bonds (East Davis Mace Ranch Project) District No. 1999-2 4.35%, 01/07/01 4,440 4,440 Duarte, California Redevelopment Agency COP (Johnson Duarte Partners Project) Series 1984B 4.05%, 01/07/01 1,500 1,500 Par Value -------- ---------- Duarte, California Redevelopment Agency COP (Piken Duarte Partners Project) Series 1984A 4.05%, 01/07/01 $ 4,050 $ 4,050 Dublin, California Housing Authority M/F Housing RB (Park Siera Project) Series A 4.15%, 01/07/01 12,700 12,700 Dublin, California San Ramon Services District COP 4.25%, 01/07/01 10,000 10,000 El Cajon, California M/F Housing RB (Pinewood Apartments Project) 4.13%, 01/07/01 1,450 1,450 El Cajon, California Redevelopment Bonds M/F Housing RB (Mollison & Madison Project) 4.13%, 01/07/01 5,300 5,300 Encinitas, California M/F Housing Revenue Refunding Bonds (Torrey Pines Project) Series A 4.05%, 01/07/01 3,100 3,100 Fremont, California M/F Housing Revenue Refunding COP (Amber Court Apartments Project) Series 1990A 4.05%, 01/07/01 10,000 10,000 Fresno, California IDA (Keiser Corp.) 4.40%, 01/07/01 2,110 2,110 Hayward, California Housing Authority M/F RB (Huntwood Terrace Apartments) 4.05%, 01/07/01 5,565 5,565 Hayward, California M/F Housing RB (Shorewood Apartment Project) Series A 3.90%, 01/07/01 9,100 9,100 Hayward, California M/F Housing RB (Timbers Apartments Project) Series A 4.00%, 01/07/01 7,500 7,500 Hercules, California Redevelopment Agency IDRB (Pro Media Project) Series 2000A 4.35%, 01/07/01 2,500 2,500 Huntington Beach, California M/F Housing RB (Five Points Project) 4.13%, 01/07/01 6,400 6,400 Huntington Park, California Redevelopment Agency M/F Housing RB (Casa Rita Apartments) Series 1994A 4.13%, 01/07/01 4,100 4,100 71 SCHWAB CALIFORNIA MUNICIPAL MONEY FUND SCHEDULE OF INVESTMENTS (in thousands) (continued) December 31, 2000 Par Value -------- ---------- Indio, California M/F Redevelopment Bonds Refunding Housing Mortgages (Carreon Apartments Project) Series 1996A 4.05%, 01/07/01 $ 3,950 $ 3,950 Irvine Ranch, California Improvement Bond Act 1915 RB (Assesment District No. 87-8) 3.70%, 01/01/01 4,000 4,000 Irvine Ranch, California Improvement Bond Act 1915 RB (Assessment District No. 89-10) 3.70%, 01/01/01 3,100 3,100 Irvine Ranch, California Improvement Bond Act 1915 RB (Assessment District No. 93-14) 3.75%, 01/01/01 13,900 13,900 Irvine Ranch, California Improvement Bond Act 1915 RB (Assessment District No. 94-15) 3.70%, 01/01/01 900 900 Irvine Ranch, California Improvement Bond Act 1915 RB (Assessment District) 3.70%, 01/01/01 4,100 4,100 3.70%, 01/07/01 8,050 8,050 4.00%, 01/07/01 1,900 1,900 Irvine Ranch, California Water District Consolidated GO Revenue Refunding Bonds Series 1985B 3.70%, 01/01/01 9,700 9,700 Irvine Ranch, California Water District Consolidated RB (Districts 140, 240, 105, 250) 3.70%, 01/01/01 7,850 7,850 Irvine Ranch, California Water District Consolidated RB Series 1985 3.70%, 01/01/01 2,000 2,000 Irvine Ranch, California Water District COP (Capital Improvement Project) 3.75%, 01/01/01 29,500 29,500 Irvine Ranch, California Water District GO (Districts 105, 140, 240 & 250) Series 1995 3.75%, 01/01/01 3,800 3,800 Irvine Ranch, California Water District GO (Various Improvement District Number 182) Series 1988A 3.75%, 01/01/01 1,600 1,600 Par Value -------- ---------- Irvine Ranch, California Water District Improvement Bond GO (District 284) Series 1988A 3.75%, 01/01/01 $ 3,200 $ 3,200 Irvine Ranch, California Water District Improvement Bond Limited Obligation No. 97-17 3.70%, 01/01/01 9,593 9,593 Irvine Ranch, California Water District RB 3.70%, 01/01/01 1,000 1,000 Kern County, California COP (Kern Public Facilities Project) Series A 3.90%, 01/07/01 3,900 3,900 Livermore, California M/F Housing Revenue Refunding Bonds (Arbors Apartment Project) Series 1991A 4.35%, 01/07/01 9,005 9,005 Long Beach, California Housing Authority M/F Housing RB (Channel Point Apartments Project) 3.95%, 01/07/01 6,250 6,250 Los Angeles County, California COP ACES (Los Angeles County Museum of Art Project) Series 1985A 4.10%, 01/07/01 2,300 2,300 Los Angeles County, California COP ACES (Los Angeles County Museum of Art Project) Series 1985B 4.10%, 01/07/01 2,600 2,600 Los Angeles County, California Housing Authority M/F Housing RB (Malibu Canyon Apartments Project) Series B 4.10%, 01/07/01 21,900 21,900 Los Angeles County, California M/F Housing RB (Channel Gateway Apartments) 4.15%, 01/07/01 49,300 49,300 Los Angeles County, California Metropolitan Transportation Authority Revenue Refunding Bonds Series 1993A 3.90%, 01/07/01 16,800 16,800 Los Angeles County, California Pension Revenue Refunding Bond Series 1996A 4.00%, 01/07/01 5,500 5,500 Los Angeles County, California Transportation Commission Sales Tax RB Series 1992A 4.00%, 01/07/01 3,300 3,300 72 Par Value -------- ---------- Los Angeles, California Community Redevelopment Agency M/F Housing Revenue Refunding Bonds (Promenade Towers Project) Series 2000 4.00%, 01/07/01 $ 28,900 $ 28,900 Los Angeles, California Community Redevelopment Agency (Grand Promenade Project) 4.10%, 01/07/01 12,300 12,300 Los Angeles, California Department Water & Power Electric Plant RB Series 2000A 4.00%, 01/07/01 5,000 5,000 Los Angeles, California M/F Housing RB (Beverly Park Apartments) 4.10%, 01/07/01 24,400 24,400 Los Angeles, California M/F Housing RB (Studio Colony) Series 1985C 4.10%, 01/07/01 16,691 16,691 Los Angeles, California M/F Housing RB Series 1985K 4.15%, 01/07/01 81,285 81,285 Los Angeles, California M/F Housing RB (Fountain Park Project) Series P 4.00%, 01/07/01 11,100 11,100 Los Angeles, California M/F Housing RB (Fountain Park Project Phase II) Series B 4.00%, 01/07/01 25,615 25,615 Los Angeles, California Unified School District COP (Belmont Learning Complex Project) Series 1997A 4.20%, 01/07/01 23,200 23,200 Madera, California Public Financing Municipal Golf Course Revenue Refinancing Authority 4.55%, 01/07/01 1,950 1,950 Metropolitan Water District of Southern California Revenue Refunding Bonds Series 1996A 3.90%, 01/07/01 44,505 44,505 Metropolitan Water District of Southern California Revenue Refunding Bonds Series 1997C 4.10%, 01/07/01 24,800 24,800 Metropolitan Water District of Southern California Revenue Refunding Bonds Series 1998B 4.00%, 01/07/01 5,000 5,000 Par Value -------- ---------- Metropolitan Water District of Southern California Waterworks RB Series 2000B-1 3.70%, 01/01/01 $ 4,000 $ 4,000 Metropolitan Water District of Southern California Waterworks RB Series 2000B-3 3.75%, 01/01/01 9,600 9,600 Mount San Jacinto, California Winter Park Authority (Palm Springs Aerial Project) 4.10%, 01/07/01 8,500 8,500 Mount San Jacinto, California Winter Park Authority COP (Palm Springs Aerial Project) Series 2000B 4.10%, 01/07/01 2,900 2,900 Oakland, California Financing Authority Lease RB (JT Powers Project) Series A-2 4.00%, 01/07/01 900 900 Orange County, California Apartment Development RB (Hidden Hills) Series 1985C 4.00%, 01/07/01 5,200 5,200 Orange County, California Apartment Development RB Series 1985V 4.15%, 01/07/01 18,000 18,000 Orange County, California Apartment Development RB Series F 4.00%, 01/07/01 12,000 12,000 Orange County, California Apartment Development Revenue Refunding Bonds (Jess L. Frost Project) Series 1985B 4.10%, 01/07/01 10,200 10,200 Orange County, California Apartment Development Revenue Refunding Bonds (Pointe Niguel Project) Series 1992C 3.85%, 01/07/01 11,000 11,000 Orange County, California Apartment Development Revenue Refunding Bonds (Vintage Woods) Series 1988H 3.95%, 01/07/01 5,000 5,000 Orange County, California COP (Florence Crittenton Services Project) Series 1990 4.15%, 01/07/01 5,900 5,900 73 SCHWAB CALIFORNIA MUNICIPAL MONEY FUND SCHEDULE OF INVESTMENTS (in thousands) (continued) December 31, 2000 Par Value -------- ---------- Orange County, California M/F Housing RB (Lantern Pines Project) 4.25%, 01/07/01 $ 6,200 $ 6,200 Orange County, California Sanitation District Authority 3.70%, 01/07/01 2,400 2,400 Orange County, California Sanitation District COP Series 2000A 3.70%, 01/01/01 9,800 9,800 Orange County, California Sanitation District COP Series 2000B 3.70%, 01/01/01 1,100 1,100 Orange County, California Special Assessment Improvement Bonds (District 88-1) 3.75%, 01/01/01 11,000 11,000 Panama Buena Vista, California Unified School District COP (1994 Capital Improvement Financing Project) 4.90%, 01/07/01 4,000 4,000 Petaluma, California Community M/F Housing Authority (Oakmont At Petaluma Project) 4.20%, 01/07/01 3,550 3,550 Pinole, California Redevelopment Agency M/F Housing RB (East Bluff Apartments Project) 4.65%, 01/07/01 2,559 2,559 Pleasant Hill, California M/F Housing RB (Brookside Apartments Project) 3.90%, 01/07/01 5,000 5,000 Pleasant Hill, California Redevelopment Agency M/F Housing (Chateau III Project) Series A 4.45%, 01/07/01 2,360 2,360 Redwood City, California COP (City Hall Project) 4.25%, 01/07/01 2,400 2,400 Riverside County, California Asset Leasing Corp. Leasehold RB (South West Justice Center) Series 2000B 4.00%, 01/07/01 15,300 15,300 Riverside County, California Community Facilities District #88-4 (Winchester Ranch) 3.95%, 01/07/01 13,100 13,100 Riverside County, California COP ACES Public Facilities Series 1985B 3.90%, 01/07/01 19,136 19,136 Par Value -------- ---------- Riverside County, California Housing Authority M/F RB (Tyler Springs Apartments) Series 1999C 3.95%, 01/07/01 $ 7,000 $ 7,000 Riverside County, California Housing Authority M/F RB (Briarwood Apartment Project) Series 1985C 4.10%, 01/07/01 4,500 4,500 Riverside County, California Housing Authority M/F RB (Victoria Springs Apartments Project) 4.13%, 01/07/01 9,300 9,300 Riverside County, California IDA RB (Calmold, Inc. Project) 4.35%, 01/07/01 3,510 3,510 Riverside County, California IDA RB (Cryogenic Project) Series B 4.10%, 01/07/01 4,100 4,100 Riverside County, California M/F Housing RB (Ambergate Apartments) Series 1992A 4.15%, 01/07/01 2,800 2,800 Sacramento County, California COP (Administration Center & Court House Project) 4.25%, 01/07/01 8,300 8,300 Sacramento County, California Housing Authority (Oakland Valley Apartments Project) Series E 4.13%, 01/07/01 4,000 4,000 Sacramento County, California Housing Authority (Sun Valley Apartments Project) Series F 4.13%, 01/07/01 3,750 3,750 Sacramento County, California Housing Authority M/F Housing RB (Chesapeake Commons Project) Series 1997A 4.09%, 01/07/01 28,000 28,000 Sacramento County, California Housing Authority M/F Housing RB (Hidden Oaks Apartments) Series 1999C 4.10%, 01/07/01 6,300 6,300 Sacramento County, California Special Facilities (Recessna Aircraft Corp. Project) 4.35%, 01/07/01 3,700 3,700 74 Par Value -------- ---------- Salinas, California Apartment Development M/F Housing RB (Mariner Villa Project) Series 1985B 4.10%, 01/07/01 $ 2,825 $ 2,825 San Bernardino County, California COP (Glen Helen Blockbuster Pavilion Project) Series 1994C 4.30%, 01/07/01 6,540 6,540 San Bernardino County, California COP (Medical Center Financing Project) 4.20%, 01/07/01 26,410 26,410 San Diego, California Housing Authority M/F Mortgage RB (Creekside Villa) Series 1999B 4.09%, 01/07/01 6,000 6,000 San Diego, California Housing Authority M/F Mortgage RB (Canyon Rim Apartments) Series B 4.10%, 01/07/01 20,000 20,000 San Diego, California Housing Authority M/F Mortgage RB (La Cima) Series 1999K 3.85%, 01/07/01 5,000 5,000 San Francisco, California City & County Redevelopment Agency M/F Housing RB (3rd & Mission) Series 1999C 3.95%, 01/07/01 28,000 28,000 San Francisco, California City & County Redevelopment Agency M/F Housing RB (Fillmore Center Project) Series A1 4.05%, 01/07/01 29,000 29,000 San Francisco, California City & County Redevelopment Agency M/F Housing RB (Fillmore Center Project) Series A2 4.20%, 01/07/01 3,750 3,750 San Francisco, California City & County Redevelopment Agency M/F Housing RB (Notre Dame Apartments) Series G 4.15%, 01/07/01 16,640 16,640 San Francisco, California City & County Redevelopment Agency M/F Housing RB (Post Street Towers) Series A 4.10%, 01/07/01 10,000 10,000 San Francisco, California Housing Authority M/F Housing RB (Magnolia Plaza Project) Series A 4.20%, 01/07/01 5,500 5,500 Par Value -------- ---------- San Jose, California M/F Housing RB (Almeden Lake Apartments Project) Series 1997A 4.13%, 01/07/01 $ 15,900 $ 15,900 San Jose, California M/F Housing RB (Carlton Plaza Project) Series A 4.65%, 01/07/01 5,000 5,000 San Jose, California M/F Housing RB (Seinna at Renaissance Project) Series 1996A 4.10%, 01/07/01 20,000 20,000 San Jose, California Redevelopment Agency RB (Merged Area Redevelopment Project) 4.15%, 01/07/01 13,200 13,200 San Jose, California Redevelopment M/F Housing (101 San Fernando Apartments Project) Series A 4.35%, 01/07/01 37,000 37,000 San Leandro, California M/F Housing RB (Carlton Plaza Project) Series A 4.45%, 01/07/01 1,900 1,900 Santa Clara County, California Electric Authority RB, Series C 3.90%, 01/07/01 20,200 20,200 Santa Clara County, California Hospital Facility Authority RB (El Camino Hospital District - Valley Medical Center Project) Series 1985A 4.55%, 01/07/01 17,200 17,200 Santa Clara County, California M/F Housing Revenue Refunding Bonds (Brairwood Apartments Project) Series 1996B 3.95%, 01/07/01 9,400 9,400 Santa Clara County, California M/F Housing Revenue Refunding Bonds (Grove Garden Apartments) Series 1997A 4.00%, 01/07/01 6,100 6,100 Santa Fe Springs, California IDA RB 4.35%, 01/30/01 4,000 4,000 Santa Paula, California Public Financing Authority Lease Water System (Aquis Project) 4.40%, 01/07/01 9,600 9,600 Santa Rosa, California M/F Housing RB (Quail Run Apartments) Series 1997A 4.20%, 01/07/01 5,005 5,005 75 SCHWAB CALIFORNIA MUNICIPAL MONEY FUND SCHEDULE OF INVESTMENTS (in thousands) (continued) December 31, 2000 Par Value -------- ---------- South Placer Wastewater Authority California Wastewater RB Series B 4.25%, 01/07/01 $ 20,000 $ 20,000 Southern California Public Power Authority RB (Southern Transmission Project) Series 1991 4.00%, 01/07/01 1,000 1,000 Southern California Public Power Authority RB (Sub-Southern Transmission Project) Series 2000A 3.90%, 01/07/01 25,900 25,900 Southern California Public Power Authority Revenue Refunding Bonds (Palos Verdes Project) Series 1996B 4.00%, 01/07/01 5,000 5,000 Southern California Public Power Authority Revenue Refunding Bonds Series C 4.00%, 01/07/01 9,870 9,870 Stockton, California Community Facility District RB 4.35%, 01/07/01 2,085 2,085 Tulare Porterville, California School Financing Authority 4.90%, 01/07/01 6,765 6,765 Union City, California M/F Housing RB (Greenhaven Apartments Project) Series 1997A 3.95%, 01/07/01 10,975 10,975 Vallecitos, California Water District (Twin Oaks Reservoir Project) 3.90%, 01/07/01 19,565 19,565 Vallejo City, California Unified School District COP (Various Capital Improvement Financing Projects) Series 1999E 4.10%, 01/07/01 5,915 5,915 Victor Valley, California Community College District COP 4.35%, 01/07/01 53,450 53,450 Vista, California IDA IDRB (Desalination System, Inc. Project) 4.35%, 01/07/01 6,300 6,300 West Sacramento, California Special Tax RB (Community Facilities District #6) 4.35%, 01/07/01 3,950 3,950 Par Value -------- ---------- Westminster, California Redevelopment Agency M/F Housing RB (Brookhurst Royale) Series A 5.00%, 01/07/01 $ 7,700 $ 7,700 Westminster, California Agency Tax Allocation (Community Redevelopment Project) 4.25%, 01/07/01 9,515 9,515 Westminster, California COP (Civic Center Project) Series A 4.25%, 01/07/01 4,175 4,175 ---------- VARIABLE RATE OBLIGATIONS (Cost $2,707,974) 2,707,974 ---------- TAX-EXEMPT COMMERCIAL PAPER -- 20.8% (c) CALIFORNIA -- 17.8% California Pollution Control Financing Authority RB TECP 3.80%, 03/08/01 5,360 5,360 California Pollution Control Financing Authority RB TECP (Southern California Edison) Series 1985A 4.00%, 01/03/01 12,500 12,500 California State GO TECP (f) 3.70%, 01/16/01 93,650 93,650 3.95%, 02/09/01 18,000 18,000 4.00%, 03/02/01 28,000 28,000 3.65%, 03/05/01 25,000 25,000 3.70%, 03/05/01 15,000 15,000 3.75%, 03/05/01 20,700 20,700 3.80%, 03/05/01 7,000 7,000 3.60%, 03/06/01 13,000 13,000 3.70%, 03/06/01 50,300 50,300 3.70%, 03/07/01 28,000 28,000 3.75%, 03/09/01 43,000 43,000 3.60%, 03/28/01 7,000 7,000 Chino Basin, California Regional Financing Authority TECP 3.65%, 04/05/01 11,225 11,225 East Bay, California Municipal Utilities District TECP 3.75%, 03/08/01 21,800 21,800 3.85%, 05/09/01 6,000 6,000 76 Par Value -------- ---------- Golden Gate Bridge, California Highway TECP 3.70%, 03/05/01 $ 15,000 $ 15,000 4.00%, 03/08/01 29,500 29,500 Long Beach, California Harbor TECP Series 1994A (f) 3.65%, 03/07/01 47,850 47,850 Los Angeles County, California Capital Asset Leasing Corporation Lease Revenue TECP (f) 3.75%, 01/10/01 21,400 21,400 3.75%, 02/22/01 3,500 3,500 3.65%, 03/05/01 11,400 11,400 3.70%, 03/08/01 11,060 11,060 3.75%, 03/09/01 9,040 9,040 Los Angeles County, California Metropolitian Transportation TECP (f) 3.65%, 01/16/01 12,105 12,105 3.80%, 02/21/01 6,000 6,000 3.85%, 03/05/01 10,000 10,000 Los Angeles, California Wastewater System TECP 3.70%, 02/20/01 12,600 12,600 4.00%, 03/05/01 9,000 9,000 3.70%, 03/07/01 26,500 26,500 Orange County, California Local Transportation Authority Sales Tax Revenue TECP 3.80%, 03/09/01 40,000 40,000 Oakland Port, California ACES TECP 3.70%, 03/07/01 30,000 30,000 3.75%, 03/07/01 25,490 25,490 Sacramento, California Municipal Utilities District TECP 3.70%, 01/17/01 8,000 8,000 3.70%, 03/08/01 20,950 20,950 4.00%, 03/09/01 33,950 33,950 San Francisco, California Bay Area Rapid Transit TECP Series F 3.70%, 01/12/01 18,000 18,000 4.00%, 03/08/01 44,000 44,000 San Francisco, California City & County TECP 3.65%, 01/12/01 1,245 1,245 3.70%, 01/12/01 5,755 5,755 Par Value -------- ---------- San Francisco, California International Airport TECP 3.75%, 01/12/01 $ 14,085 $ 14,085 3.75%, 03/07/01 23,655 23,655 3.80%, 03/07/01 11,000 11,000 3.90%, 03/14/01 24,990 24,990 3.70%, 03/15/01 5,175 5,175 3.75%, 03/15/01 20,040 20,040 4.00%, 03/15/01 7,380 7,380 University of California Board of Regents TECP 3.75%, 02/14/01 25,000 25,000 3.65%, 02/16/01 10,000 10,000 3.70%, 02/20/01 5,000 5,000 3.75%, 03/05/01 25,000 25,000 3.65%, 03/08/01 15,400 15,400 3.75%, 03/08/01 6,000 6,000 3.65%, 04/05/01 15,155 15,155 3.70%, 06/19/01 20,000 20,000 ---------- 1,085,760 ---------- PUERTO RICO -- 3.0% Puerto Rico Goverment Development Bank TECP 3.95%, 01/05/01 6,360 6,360 3.75%, 01/11/01 28,800 28,800 3.75%, 01/17/01 20,000 20,000 3.85%, 02/08/01 4,000 4,000 3.95%, 03/05/01 3,576 3,576 3.75%, 03/08/01 36,916 36,916 3.85%, 03/21/01 45,000 45,000 3.90%, 04/05/01 17,229 17,229 4.00%, 04/05/01 11,000 11,000 3.75%, 05/08/01 10,555 10,555 ---------- 183,436 ---------- TOTAL TAX-EXEMPT COMMERCIAL PAPER (Cost $1,269,196) 1,269,196 ---------- VARIABLE RATE TENDER OPTION BONDS -- 12.2% (a)(b)(f) CALIFORNIA -- 10.2% Big Bear Lake, California Water Revenue TOBP (PA- 597) 4.34%, 01/07/01 8,445 8,445 California Educational Facilities Authority RB TOB Series 413 4.24%, 01/07/01 8,995 8,995 77 SCHWAB CALIFORNIA MUNICIPAL MONEY FUND SCHEDULE OF INVESTMENTS (in thousands) (continued) December 31, 2000 Par Value -------- ---------- California HFA Home Mortgage RB TOB 4.34%, 01/07/01 $ 4,785 $ 4,785 California HFA Revenue TOB Series 1997E 4.34%, 01/07/01 9,460 9,460 California State GO TOB Series 194 4.23%, 01/07/01 4,120 4,120 California State GO TOB Series 195 4.23%, 01/07/01 4,000 4,000 California State GO TOB Series 1999M 4.20%, 01/07/01 46,000 46,000 California State GO TOB Series 2000XX (Merlot) 4.20%, 01/07/01 7,300 7,300 California State GO TOBP (PA-676) 4.34%, 01/07/01 19,495 19,495 California State GO TOBP (PA-779R) 4.34%, 01/07/01 11,995 11,995 California State GO TOBP (PT-153) 4.41%, 01/07/01 4,995 4,995 California State GO TOBP (PT-1070) 4.34%, 01/07/01 8,565 8,565 California State GO TOBP (PT-1072) 4.34%, 01/07/01 9,565 9,565 California State GO TOBP (PT-1236) 4.34%, 01/07/01 15,800 15,800 California State GO TOBP (PT-1252) 4.34%, 01/07/01 34,045 34,045 California State Government Eagle TOB Series 1997C 4.34%, 01/07/01 10,900 10,900 California State Government Eagle TOB Series 2000 4.34%, 01/07/01 37,700 37,700 California State HFA RB TOBP (PA-540R) 4.34%, 01/07/01 4,995 4,995 California State Public Works Board Lease Revenue TOB Series 1999F 4.20%, 01/07/01 9,985 9,985 California State Putters TOB Series 132 4.17%, 01/07/01 46,950 46,950 California Statewide Community Developement Authority COP TOB Series 1999E 4.20%, 01/07/01 5,000 5,000 Foothill-De Anza, California Community College District Merlot TOB Series 2000YY 4.20%, 01/07/01 10,000 10,000 Par Value -------- ---------- Los Angeles County, California Metropolitan Transit Authority TOB 4.20%, 01/07/01 $ 23,830 $ 23,830 Los Angeles, California Department of Water & Power Electric Plant TOB Series 1 4.20%, 01/07/01 19,995 19,995 Los Angeles, California Department of Water & Power Electric Plant TOB Series 370 4.44%, 01/07/01 15,000 15,000 Los Angeles, California Department of Water & Power Revenue TOB Series L 4.20%, 01/07/01 20,390 20,390 Los Angeles, California TOBP (PA-554) 4.34%, 01/07/01 3,150 3,150 Metropolitan Water District of Southern California Water Works Revenue TOBP (PA-546) 4.34%, 01/07/01 4,750 4,750 Metropolitan Water District of Southern California Water Works Revenue TOB Series 154 4.24%, 01/07/01 10,000 10,000 Metropolitan Water District of Southern California Water Works Revenue TOB Series 1999O 4.20%, 01/07/01 16,000 16,000 Oakland Port, California Merlot TOB (First Union) Series 2000JJ 4.25%, 01/07/01 15,000 15,000 Oakland, California Revenue TOB (180 Harrison Foundation Project) Series 2000M 4.20%, 01/07/01 3,000 3,000 Palo Alto, California Unified School District TOB (Merlot Project) Series R 4.20%, 01/07/01 6,000 6,000 Port of Oakland, California TOBP (PA-663) 4.41%, 01/07/01 6,310 6,310 Sacramento County, California Sanitation District Financing Authority TOB Series 366 4.28%, 01/07/01 28,945 28,945 Sacramento County, California Sanitation District Financing Authority TOBP (PA-694) 4.34%, 01/07/01 6,090 6,090 78 Par Value -------- ---------- San Francisco, California City & County Airports Commission International Airports Revenue TOB Series 1998-31 4.39%, 01/07/01 $ 14,350 $ 14,350 San Francisco, California City & County Airports Commission International Airports Revenue TOB Series 2000-429 4.33%, 01/07/01 8,485 8,485 San Francisco, California City & County Airports Commission International Airports Revenue TOBP (PA-662) 4.41%, 01/07/01 12,670 12,670 Santa Clara Valley, California Water District COP Series 411 4.24%, 01/07/01 15,120 15,120 South Orange County, California Public Financing Authority Special Tax RB TOB Putters Series 146 4.14%, 01/07/01 10,000 10,000 State of California, Merlot GO TOB Series 2000A 4.25%, 01/07/01 18,065 18,065 University of California Board of Regents Eagle TOB 4.34%, 01/07/01 6,430 6,430 University of California Board of Regents TOBP (PT-1057) 4.34%, 01/07/01 34,505 34,505 ---------- 621,180 ---------- PUERTO RICO-- 2.0% Puerto Rico Commonwealth Highway & Transportation Authority Transportation Revenue Merlot TOB Series 2000FFF 4.20%, 01/07/01 5,000 5,000 Puerto Rico Commonwealth Infrastructure Eagle TOB Series 2000 4.94%, 01/07/01 37,210 37,210 Puerto Rico Commonwealth Infrastructure Financing Authority TOBP (PA-498 ) 4.34%, 01/07/01 3,930 3,930 Puerto Rico Commonwealth Infrastructure Financing Authority TOBP (PA-782) 4.34%, 01/07/01 37,840 37,840 Par Value -------- ---------- Puerto Rico Commonwealth TOBP (PA-652) 4.34%, 01/07/01 $ 8,730 $ 8,730 Puerto Rico Commonwealth TOB Series 3 4.44%, 01/07/01 21,795 21,795 Puerto Rico Electric Power Authority RB Putters TOB 4.14%, 01/07/01 5,000 5,000 ---------- 119,505 ---------- TOTAL VARIABLE RATE TENDER OPTION BONDS (Cost $740,685) 740,685 ---------- TAX & REVENUE ANTICIPATION NOTES -- 9.6% (c) Berkeley, California TRAN 3.68%, 12/17/01 15,000 15,096 California Community College Financing Authority TRAN Series A 4.24%, 06/29/01 35,705 35,833 California Statewide Community Development Authority RB TRAN Series A 4.27%, 06/29/01 23,500 23,608 Folsom Cordova, California Unified School Districts TRAN 3.93%, 03/01/01 3,800 3,803 Fremont, California TRAN 4.27%, 07/10/01 9,000 9,033 Los Angeles County, California Schools Pooled Financing Program Participation Certificates Pooled TRAN Series A 4.27%, 07/02/01 41,250 41,394 Los Angeles County, California TRAN Series A 4.15%, 06/29/01 100,000 100,400 Los Rios, California Community College District TRAN 3.72%, 10/24/01 22,000 22,134 Marin County, California TRAN 4.18%, 06/29/01 33,000 33,127 Moreno Valley, California Unified School District TRAN 4.00%, 08/15/01 10,000 10,045 Mt. Diablo, California Unified School District TRAN 3.77%, 01/19/01 9,600 9,604 79 SCHWAB CALIFORNIA MUNICIPAL MONEY FUND SCHEDULE OF INVESTMENTS (in thousands) (continued) December 31, 2000 Par Value -------- ---------- Oakland California Unified School District Alameda County TRAN 3.68%, 10/11/01 $ 40,000 $ 40,245 Oakland, California TRAN 4.14%, 07/24/01 63,000 63,291 San Diego, California County & School District TRAN 4.22%, 06/29/01 48,715 48,894 San Francisco, California City & County Unified School Distric TRAN 3.71%, 12/13/01 17,500 17,607 San Joaquin County, California TRAN 3.72%, 10/01/01 31,000 31,228 Santa Cruz County, California TRAN 4.16%, 07/05/01 26,490 26,598 South Coast, California Local Education Agency Pooled TRAN 4.23%, 07/03/01 50,000 50,185 ---------- TOTAL TAX & REVENUE ANTICIPATION NOTES (Cost $582,125) 582,125 ---------- REVENUE BONDS -- 7.5% (c) California HFA Home Mortgage RB Series 2000I 4.05%, 06/01/01 20,000 20,000 California HFA RB (Children's Hospital L.A.) Series 1991A 4.03%, 06/01/01 3,330 3,437 California School Cash Reserve Program Authority Pooled RB Series A (f) 3.71%, 07/03/01 45,000 45,329 4.15%, 07/03/01 71,500 71,876 4.27%, 07/03/01 250,000 251,177 California State Public Works Board Lease RB (California Community Colleges) Series 1997A 3.85%, 04/01/01 4,230 4,242 Central Valley Financing Authority, California Cogernation Project Revenue Refunding Bond (Carson Ice-Gen Project) (f) 3.76%, 07/01/01 8,885 8,916 Contra Costa County, California Transportation Authority Sales Tax RB Series 1995A (f) 3.64%, 03/01/01 1,000 1,002 Par Value -------- ---------- Kings River, California Conservation District RB (Pine Flat Power Project) Series 1992D 3.58%, 01/01/01 $ 4,960 $ 4,960 Long Beach, California Harbor RB 3.90%, 05/15/01 4,490 4,499 Los Angeles County, California Public Works Financing Authority Lease Revenue Refunding Bonds (Master Refund Project) Series 1997A 3.62%, 03/01/01 7,000 7,015 Los Angeles County, California Transportation Commission Sales Tax RB Series A 3.96%, 07/01/01 5,400 5,584 Los Angeles, California Department of Airports Airport RB (Los Angeles International Airport) Series 1995D (f) 3.00%, 05/15/01 10,000 10,090 Los Angeles, California Municipal Improvement Corp. RB (Sanitation Equipment Charge Project) Series 1999A 3.58%, 02/01/01 3,325 3,326 Northern California Power Agency Revenue Refunding Bonds (Geothermal Project No. 3) Series B (f) 3.19%, 07/01/01 6,455 6,502 Rancho, California Water District Financing Authority Revenue Refunding Fixed Option Bonds (f) 4.07%, 09/11/01 6,000 6,212 Riverside County, California Public Financing Authority Special Tax RB Senior Lein Bonds Series 1995A (e)(f) 4.15%, 09/01/01 1,750 1,753 ---------- TOTAL REVENUE BONDS (Cost $455,920) 455,920 ---------- FIXED RATE TENDER OPTION BONDS -- 1.5% (c)(f) CALIFORNIA -- 0.2% California HFA Revenue TOB Series R (a) 4.00%, 05/17/01 9,995 9,995 California State TOBP (PT-1170) (e) 4.15%, 03/22/01 4,785 4,785 ---------- 14,780 ---------- 80 Par Value -------- ---------- PUERTO RICO -- 1.3% Puerto Rico Commonwealth Infrastructure Financing Authority TOBP (PT-1028) (e) 4.05%, 01/10/01 $ 32,865 $ 32,865 Puerto Rico Commonwealth Infrastructure Financing Authority TOBP (PT-1086) (e) 4.05%, 01/10/01 32,450 32,450 Puerto Rico Housing Finance Corporation RB TOB Series J (e) 3.70%, 04/12/01 9,900 9,900 Puerto Rico Housing Finance Corporation RB TOB Series R (e) 3.80%, 09/06/01 4,675 4,675 ---------- 79,890 ---------- TOTAL FIXED RATE TENDER OPTION BONDS (Cost $94,670) 94,670 ---------- GENERAL OBLIGATIONS -- 1.5% (c) CALIFORNIA -- 1.4% California State GO 3.57%, 02/01/01 10,100 10,104 3.65%, 10/01/01 15,000 15,147 3.68%, 10/01/01 38,190 38,551 Fremont, California Capital Project GO Series B 3.89%, 03/01/01 20,940 20,960 ---------- 84,762 ---------- PUERTO RICO -- 0.1% Puerto Rico Commonwealth Public Improvement GO Series B 4.13%, 07/01/01 5,470 5,507 ---------- TOTAL GENERAL OBLIGATIONS (Cost $90,269) 90,269 ---------- BOND ANTICIPATION NOTES -- 0.7% (c) Fresno, California Unified School District BAN 3.74%, 02/01/01 45,000 45,028 ---------- TOTAL BOND ANTICIPATION NOTES (Cost $45,028) 45,028 ---------- Par Value -------- ---------- CERTIFICATES OF PARTICIPATION -- 0.2% (c) Eastern Municipal Water District California Water and Sewer Revenue COP (f) 4.15%, 07/01/01 $ 5,000 $ 5,154 Orange County, California Municipal District Water Facilities COP (Allen- McColloch Pipeline Project) Series 1996 (e)(f) 4.18%, 07/01/01 3,000 3,006 San Bernardino County, California COP (Capital Facilities Project) Series B 4.14%, 08/01/01 1,950 2,017 ---------- TOTAL CERTIFICATES OF PARTICIPATION (Cost $10,177) 10,177 ---------- ZERO COUPON BONDS -- 0.2% (c) San Joaquin Hills, California Transportation Corridor Agency Toll Road RB 3.90%, 01/01/01 9,100 9,100 ---------- TOTAL ZERO COUPON BONDS (Cost $9,100) 9,100 ---------- OTHER INVESTMENT COMPANIES-- 0.0% (g) Provident Institutional Funds - California Money Fund Portfolio 3.66% 176 176 ---------- TOTAL OTHER INVESTMENT COMPANIES (Cost $176) 176 ---------- TOTAL INVESTMENTS -- 98.6% (Cost $6,005,320) 6,005,320 ---------- OTHER ASSETS AND LIABILITIES -- 1.4% Other assets 101,625 Liabilities (13,961) ---------- 87,664 ---------- TOTAL NET ASSETS -- 100.0% $6,092,984 ========== SEE ACCOMPANYING NOTES TO SCHEDULES OF INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. 81 SCHWAB NEW YORK MUNICIPAL MONEY FUND SCHEDULE OF INVESTMENTS (in thousands) December 31, 2000 Par Value -------- ---------- VARIABLE RATE OBLIGATIONS -- 41.3% (b)(f) Albany, New York IDRB (Newkirk Products Project) Series 1995A 4.80%, 01/07/01 $ 1,000 $ 1,000 Babylon, New York IDA Resource Recovery (Ogden Martin Project) Series 1998 4.55%, 01/07/01 14,800 14,800 Chautaqua County, New York IDA Civic Facilities RB (Jamestown Center City Development Project) Series 2000A 4.80%, 01/07/01 4,000 4,000 Chenango County, New York IDA IDRB (Baille Lumber Project) Series 2000A 5.10%, 01/07/01 5,851 5,851 Duchess County, New York IDA IDRB (Mechtroncis Corp. Project) Series 1998 4.95%, 01/07/01 3,525 3,525 Dutchess County, New York IDA (Trinity Pawling School Corp. Project) 4.80%, 01/07/01 3,400 3,400 Herkimer County, New York IDA Civic Facilities RB (Templeton Foundation Project) 5.00%, 01/07/01 2,200 2,200 Long Island, New York Power Authority Electrical Systems RB Series 1998-2 4.60%, 01/07/01 31,050 31,050 Long Island, New York Power Authority Electrical Systems RB Series 1998-5 4.90%, 01/01/01 16,900 16,900 Long Island, New York Power Authority Electrical Systems RB Series 1998B-7 4.45%, 01/07/01 3,200 3,200 Monroe County, New York IDRB (ENBI Corp. Lease Rent Project) Series 1988 4.65%, 01/07/01 2,000 2,000 New York City, New York GO Series 1993A8 4.95%, 01/01/01 1,000 1,000 New York City, New York GO Series 1994B3 4.95%, 01/01/01 2,600 2,600 New York City, New York GO Series B7 4.95%, 01/01/01 8,100 8,100 New York City, New York GO Series D22 4.65%, 01/07/01 4,300 4,300 Par Value -------- ---------- New York City, New York Health & Hospitals Corp. RB (Health Systems) Series 1997A 4.60%, 01/07/01 $ 2,500 $ 2,500 New York City, New York Housing Development Corp. M/F Housing RB (100 Jane Street Development Project) Series A 4.65%, 01/07/01 6,525 6,525 New York City, New York Housing Development Corp. M/F Housing RB (15th Street Development Project) 4.70%, 01/07/01 23,000 23,000 New York City, New York Housing Development Corp. M/F Housing RB (One Columbus Project) Series A 4.65%, 01/07/01 32,800 32,800 New York City, New York Housing Development Corp. M/F Housing RB (Related Broadway Development) Series A 4.65%, 01/07/01 31,000 31,000 New York City, New York IDA Civic Facility RB (Jewish Board of Family Services Project) 4.85%, 01/07/01 15,820 15,820 New York City, New York IDA Special Facility RB (Korean Airlines Co. Project) Series 1997A 4.75%, 01/07/01 8,200 8,200 New York City, New York M/F Rental Housing RB (Tribeca Tower Project) Series 1997A 4.50%, 01/07/01 26,900 26,900 New York City, New York Municipal Water Finance Authority Water & Sewer System RB Series 1992C 4.95%, 01/01/01 7,900 7,900 New York City, New York Municipal Water Finance Authority Water & Sewer System RB Series 1993C 4.95%, 01/01/01 13,800 13,800 New York City, New York Municipal Water Finance Authority Water & Sewer System RB Series 1994G 4.90%, 01/01/01 8,000 8,000 82 Par Value -------- ---------- New York City, New York Transit Cultural Resource RB (American Museum of Natural History Project) Series 1993A 4.55%, 01/07/01 $ 5,475 $ 5,475 New York State Dormitory Authority RB (New York Foundling Charitable Project) 4.65%, 01/07/01 800 800 New York State Energy Research & Development Authority Pollution Control RB 5.00%, 01/01/01 3,600 3,600 New York State HFA Housing RB (101 West End Avenue Project) Series 1999A 4.75%, 01/07/01 7,800 7,800 New York State HFA Housing RB (345 East 94th Street Housing Project) 4.65%, 01/07/01 13,800 13,800 New York State HFA Housing RB (Chelsea Arms Housing Project) Series 1998A 4.70%, 01/07/01 18,000 18,000 New York State HFA Housing RB (East 84th Street Project) Series 1995A 4.55%, 01/07/01 1,500 1,500 New York State HFA Housing RB (Union Square South Housing Project) 4.60%, 01/07/01 26,200 26,200 New York State HFA M/F Housing RB Series 1999A 4.65%, 01/07/01 15,500 15,500 New York State HFA RB (150 East 44th Street Project) Series 2000A 4.75%, 01/07/01 25,000 25,000 New York State HFA RB (70 Battery Place Project) Series 1999A 4.65%, 01/07/01 8,500 8,500 New York State HFA RB (Normandie Court Project) Series 1991 4.60%, 01/07/01 3,290 3,290 New York State HFA RB (Tribeca Landing) Series 1997A 4.60%, 01/07/01 4,500 4,500 4.70%, 01/07/01 13,000 13,000 New York State Local Government Assistance Corp. RB Series 1995D 4.60%, 01/07/01 7,900 7,900 Par Value -------- ---------- New York State Local Government Assistance Corp. RB Series 1995E 4.60%, 01/07/01 $ 9,000 $ 9,000 New York State Medical Care Facilities Financing Agency RB (Pooled Equipment Loan Program 1) 4.55%, 01/07/01 2,900 2,900 New York State Power Authority Series 5 4.50%, 01/07/01 10,000 10,000 New York State Triborough Bridge & Tunnel Authority RB Series 1999C 4.50%, 01/07/01 13,300 13,300 New York State Triborough Bridge & Tunnel Authority Special Obligation RB Series C 4.55%, 01/07/01 10,000 10,000 Newburgh, New York IDA IDRB (Bourne and Kenney Project) Series 1999B 4.80%, 01/07/01 4,000 4,000 Niagara County, New York IDRB (Allegheny Ludlum Steel Co. Project) Series 1984 4.60%, 01/07/01 10,000 10,000 Poughkeepsie, New York IDA IDRB (Eastman & Bixby Project) Series 2000B 4.80%, 01/07/01 2,000 2,000 Schenectady, New York IDRB (Fortitech Holding Corp. Project) Series 1995A 4.80%, 01/07/01 1,100 1,100 Town of Islip, New York IDRB (Magnum Realty Creative Bath Products Project) 4.55%, 01/07/01 1,310 1,310 Yonkers, New York IDRB Civic Facilities (Consumers Union Facility Project) Series 1989 4.80%, 01/07/01 1,400 1,400 Yonkers, New York IDRB Civic Facilities (Consumers Union Facility Project) Series 1991 4.80%, 01/07/01 700 700 Yonkers, New York IDRB Civic Facilities (Consumers Union Facility Project) Series 1994 4.80%, 01/07/01 1,820 1,820 ---------- TOTAL VARIABLE RATE OBLIGATIONS (Cost $502,766) 502,766 ---------- 83 SCHWAB NEW YORK MUNICIPAL MONEY FUND SCHEDULE OF INVESTMENTS (in thousands) (continued) December 31, 2000 Par Value -------- ---------- VARIABLE RATE TENDER OPTION BONDS -- 21.6% (a)(c)(f) Long Island, New York Power Authority Electric System RB TOBP (PA-522) 4.90%, 01/07/01 $ 21,000 $ 21,000 Long Island, New York Power Authority Electric System RB TOB Series 1998A 4.86%, 01/07/01 1,900 1,900 New York City, New York GO Series 394 4.84%, 01/07/01 6,920 6,920 New York City, New York GO Series F 4.89%, 01/07/01 3,395 3,395 New York City, New York GO TOB (CoreStates Merlot Program Project) Series 1997C 4.65%, 01/07/01 26,000 26,000 New York City, New York Health and Hospital Corp. RB TOBP (PA-555) 4.84%, 01/07/01 17,620 17,620 New York City, New York Industrial Development Agency IDA RB TOBP (PT-459) 4.89%, 01/07/01 4,445 4,445 New York City, New York Municipal Financing Authority Water & Sewer System RB TOB 4.84%, 01/07/01 4,995 4,995 New York City, New York Municipal Acceptance Corp. TOB 4.84%, 01/07/01 23,445 23,445 New York City, New York Municipal Water Finance Authority Water & Sewer Systems Revenue TOBP (PA-523) Series 1999B 4.84%, 01/07/01 18,235 18,235 New York City, New York Transitional Finance Authority Revenue TOB Series 283 4.84%, 01/07/01 3,700 3,700 New York City, New York Transitional Finance Authority TOB 4.86%, 01/07/01 28,720 28,720 New York Local Government Assistance Corp. TOBP (PT-1055) Series 1997B 4.35%, 01/07/01 9,615 9,615 Par Value -------- ---------- New York State Dormitory Authority RB TOB (Montefiore Medical Center Project) Series 156 4.87%, 01/07/01 $ 1,525 $ 1,525 New York State Dormitory Authority TOB 4.86%, 01/07/01 12,375 12,375 New York State Energy Research & Development Authority TOB (Eagle Trust) Series 1994A 4.86%, 01/07/01 14,850 14,850 New York State Energy Research & Development Authority Gas Facilities RB TOB Series 379 4.89%, 01/07/01 14,125 14,125 New York State Environmental Pollution Control RB TOB (96-C3202) Series 1994D 4.86%, 01/07/01 17,050 17,050 New York State Medical Care Facility TOBP (PT-154) 4.84%, 01/07/01 3,175 3,175 New York State Mortgage Agency RB TOB Merlots Series BO3 4.63%, 01/07/01 4,800 4,800 New York State Mortgage Agency TOB Series 1999F 4.84%, 01/07/01 24,795 24,795 ---------- TOTAL VARIABLE RATE TENDER OPTION BONDS (Cost $262,685) 262,685 ---------- TAX-EXEMPT COMMERCIAL PAPER -- 8.2% (c) Long Island, New York Power Authority Electric TECP 4.30%, 01/17/01 20,000 20,000 4.15%, 03/08/01 10,200 10,200 New York City, New York GO TECP Series 1994H-3 4.25%, 02/12/01 12,000 12,000 New York State Environmental Quality TECP 4.20%, 02/01/01 3,000 3,000 4.25%, 02/01/01 1,000 1,000 4.10%, 02/07/01 38,400 38,400 4.15%, 02/14/01 4,300 4,300 84 Par Value -------- ---------- New York State Power Authority Series 8 TECP 4.15%, 03/08/01 $ 11,450 $ 11,450 ---------- TOTAL TAX-EXEMPT COMMERCIAL PAPER (Cost $100,350) 100,350 ---------- REVENUE BONDS -- 7.3% (c) Municipal Assistance Corp. for the City of New York, New York RB Series 1998M 4.05%, 07/01/01 5,000 5,023 New York City, New York Transit Cultural Resources RB (American Museum of Natural History Project) Series 1999B (f) 4.50%, 07/01/01 8,000 8,000 New York State Energy Research & Development Authority Pollution Control RB (New York State Electric & Gas Project) Series B (f) 4.25%, 10/15/01 12,875 12,875 New York State Local Assistance Corp. RB Series 1991A 4.65%, 04/01/01 1,000 1,026 New York State Local Assistance Corp. RB Series 1991C 4.19%, 04/01/01 11,630 11,938 New York State Power Authority RB Series 2000A 4.18%, 01/07/01 5,500 5,538 New York State Power Authority Revenue & General Purpose Refunding Bond Series 1991Z 4.14%, 01/01/02 5,000 5,210 New York State Thruway Authority Highway & Bridge Authority RB Series 2000A 4.24%, 04/01/01 15,870 15,889 New York State Urban Development Corp. RB 4.22%, 04/01/01 17,250 17,727 New York State Urban Development Corp. RB (Correctional Facilities Service Contract) Series 1998B 4.30%, 01/01/01 3,500 3,500 New York Triborough Bridge & Tunnel Authority RB Series 1991T 4.03%, 01/01/01 1,810 1,810 ---------- TOTAL REVENUE BONDS (Cost $88,536) 88,536 ---------- Par Value -------- ---------- FIXED RATE TENDER OPTION BONDS -- 7.2% (c)(e)(f) New York Local Government Assistance Corp. TOB Series 2000-23 4.13%, 05/02/01 $ 20,965 $ 20,965 New York State Dormitory Authority RB TOB Series 2000-15 4.35%, 07/18/01 47,030 47,030 New York State Mortgage Agency RB TOB (Homeowners Mortgage) Series 77-A /(Bank of America LOC) 4.45%, 01/07/01 14,115 14,115 New York State Mortgage Agency Revenue TOBP (PT-260) 4.45%, 05/14/01 5,560 5,560 ---------- TOTAL FIXED RATE TENDER OPTION BONDS (Cost $87,670) 87,670 ---------- REVENUE ANTICIPATION NOTES -- 4.7% (c) Nassau County, New York RAN Series D 4.48%, 04/12/01 7,100 7,129 New York City, New York RAN Series A 4.22%, 04/12/01 35,000 35,074 4.25%, 04/12/01 15,000 15,031 ---------- TOTAL REVENUE ANTICIPATION NOTES (Cost $57,234) 57,234 ---------- BOND ANTICIPATION NOTES -- 3.8% (c) Clinton County, New York BAN 4.40%, 07/27/01 9,906 9,925 Islip, New York BAN 4.43%, 06/22/01 6,550 6,567 Ithaca, New York BAN 3.98%, 01/19/01 12,977 12,980 Nassau County, New York Interim Finance Authority BAN Series 2000A-1 4.10%, 09/28/01 11,000 11,071 4.10%, 12/19/01 5,400 5,445 ---------- TOTAL BOND ANTICIPATION NOTES (Cost $45,988) 45,988 ---------- 85 SCHWAB NEW YORK MUNICIPAL MONEY FUND SCHEDULE OF INVESTMENTS (in thousands) (continued) December 31, 2000 Par Value -------- ---------- TAX ANTICIPATION NOTES -- 3.7% (c) Harrison, New York Central School District TAN 4.37%, 06/29/01 $ 4,000 $ 4,012 Jericho, New York Union Free School District TAN 4.47%, 06/28/01 6,500 6,516 Smithtown, New York Central School District TAN 4.37%, 06/26/01 9,000 9,026 Suffolk County, New York TAN (d) 4.00%, 08/14/01 25,000 25,075 ---------- TOTAL TAX ANTICIPATION NOTES (Cost $44,629) 44,629 ---------- MANDATORY PUT BONDS -- 2.1% (c) New York State GO (Environmental Quality Project) Series G 4.30%, 10/04/01 4,800 4,800 New York State GO Series A 4.40%, 02/08/01 21,000 21,000 ---------- TOTAL MANDATORY PUT BONDS (Cost $25,800) 25,800 ---------- GENERAL OBLIGATIONS -- 1.8% (c) Nassau County, New York GO Series 1999C (f) 4.20%, 01/01/01 2,250 2,250 New York City, New York GO Series 1990B 4.40%, 06/01/01 5,170 5,300 New York City, New York GO Series 1992C-1 (f) 4.30%, 08/01/01 8,275 8,354 New York City, New York GO Series 1995C 4.25%, 08/15/01 5,580 5,680 ---------- TOTAL GENERAL OBLIGATIONS (Cost $21,584) 21,584 ---------- Par Value -------- ---------- OTHER INVESTMENT COMPANIES -- 0.0% (g) Provident Institutional Funds - New York Money Fund Portfolio 4.13% $ 433 $ 433 ---------- TOTAL OTHER INVESTMENT COMPANIES (Cost $433) 433 ---------- TOTAL INVESTMENTS -- 101.7% (Cost $1,237,675) 1,237,675 ---------- OTHER ASSETS ANDLIABILITIES -- (1.7%) Other assets 17,806 Liabilities (38,804) ---------- (20,998) ---------- TOTAL NET ASSETS -- 100.0% $1,216,677 ========== SEE ACCOMPANYING NOTES TO SCHEDULES OF INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. 86 SCHWAB NEW JERSEY MUNICIPAL MONEY FUND SCHEDULE OF INVESTMENTS (in thousands) December 31, 2000 Par Value -------- -------- VARIABLE RATE OBLIGATIONS -- 32.4% (b)(f) DELAWARE -- 1.2% Delaware River & Bay Authority, Delaware RB Series B 4.50%, 01/07/01 $ 3,700 $ 3,700 -------- NEW JERSEY -- 30.4% Essex County, New Jersey Public Improvement Authority RB (County Asset Sale Project) Series 1995 4.60%, 01/07/01 6,250 6,250 Monmouth County, New Jersey Improvement Authority Pooled Government Loan Progam 4.50%, 01/07/01 6,000 6,000 New Jersey Economic Development Authority Natural Gas Facilities RB (New Jersey Natural Gas Co.) Series 1998C 4.60%, 01/07/01 1,800 1,800 New Jersey Economic Development Authority Natural Gas Facilities Revenue Refunding Bonds (New Jersey Natural Gas Co.) Series 1998B 4.60%, 01/07/01 2,000 2,000 New Jersey Economic Development Authority RB (500 International Partners Project) 4.80%, 01/07/01 5,800 5,800 New Jersey Economic Development Authority RB (Catholic Community Services Project) 4.60%, 01/07/01 4,850 4,850 New Jersey Economic Development Authority RB (Graphic Management, Inc. Project) 4.60%, 01/07/01 5,975 5,975 New Jersey Economic Development Authority RB (Hamilton Industrial Development Project) Series 1998 4.75%, 01/07/01 6,730 6,730 New Jersey Economic Development Authority RB (Jewish Home Rockleigh Project) Series 1998 4.80%, 01/07/01 5,000 5,000 New Jersey Economic Development Authority RB (Job Haines Home Project) 4.60%, 01/07/01 4,000 4,000 Par Value -------- -------- New Jersey Economic Development Authority RB (Public Service Electric & Gas Company Project) Series 1995A 4.70%, 01/07/01 $ 1,700 $ 1,700 New Jersey Economic Development Authority RB (St. James Prep & Social Service Project) Series 1998 4.65%, 01/07/01 1,890 1,890 New Jersey Economic Development Authority RB (Toys R Us, Inc. Project) Series 1984 4.60%, 01/30/01 3,000 3,000 New Jersey Economic Development Authority RB (Wechsler Coffee Corp. Project) Series 1998 4.80%, 01/07/01 1,315 1,315 New Jersey Economic Development Authority Revenue Refunding Bonds (Airis Newark, LLC Project) 4.65%, 01/07/01 1,500 1,500 New Jersey Economic Development Authority Thermal Energy Facilities RB (Thermal Energy, Ltd. Partnership I Project) Series 1997 4.65%, 01/07/01 4,750 4,750 New Jersey Health Care Facilities Financing Authority RB (Hackettstown Community Hospital Project) 4.60%, 01/07/01 3,000 3,000 New Jersey Health Care Facilities Financing Authority RB (Princeton Medical Center Project) Series 1999A-3 4.70%, 01/07/01 4,100 4,100 New Jersey Health Care Facilities Financing Authority Revenue Refunding Bonds (Christian Health Project) Series 1998B 4.50%, 01/07/01 6,400 6,400 New Jersey Health Care Facilities Financing Authority RB (Hospital Capital Asset Financing Project) Series 1985A 4.50%, 01/07/01 2,600 2,600 New Jersey Sports & Exposition Authority RB Series 1992C 4.65%, 01/07/01 1,000 1,000 87 SCHWAB NEW JERSEY MUNICIPAL MONEY FUND SCHEDULE OF INVESTMENTS (in thousands) (continued) December 31, 2000 Par Value -------- -------- New Jersey State Educational Facilities Authority RB (Caldwell College) Series 2000B 4.60%, 01/07/01 $ 2,300 $ 2,300 New Jersey State Turnpike Authority RB Series 1991D 4.50%, 01/07/01 15,600 15,600 -------- 97,560 -------- PUERTO RICO -- 0.8% Puerto Rico Commonwealth Highway & Transportation Authority Series 1998A 3.90%, 01/07/01 2,600 2,600 -------- TOTAL VARIABLE RATE OBLIGATIONS (Cost $103,860) 103,860 -------- VARIABLE RATE TENDER OPTION BONDS -- 27.1% (a)(b)(f) NEW JERSEY -- 23.7% Essex County, New Jersey Improvement Authority Lease Revenue TOBP (PA-648) 4.74%, 01/07/01 5,995 5,995 New Jersey Economic Development Authority Natural Gas Facilities RB TOB (Nui Corp. Project) Series 161 4.81%, 01/07/01 1,525 1,525 New Jersey Economic Development Authority Natural Gas Facilities Revenue TOB Series 371 4.79%, 01/07/01 3,000 3,000 New Jersey Health Care Facilities Financing Authority RB TOBP (PA-504) 4.74%, 01/07/01 7,270 7,270 New Jersey State Housing & Mortgage Finance Agency RB TOBP (PT-287) 5.25%, 01/01/01 6,245 6,245 New Jersey State TOB Series 316 4.74%, 01/07/01 6,000 6,000 New Jersey State Transportation Corp. TOB Series 148 4.75%, 01/07/01 3,000 3,000 New Jersey State Transportation Trust Fund Authority TOB Series 2000C 4.74%, 01/07/01 10,400 10,400 New Jersey State Transportation Trust Fund Authority TOB Series 203 4.74%, 01/07/01 1,995 1,995 Par Value -------- -------- New Jersey State Transportation Trust Fund Authority TOB Series 204 4.74%, 01/07/01 $ 14,685 $ 14,685 New Jersey State Turnpike Authority Turnpike RB TOBP (PT-347) 4.77%, 01/07/01 5,205 5,205 New Jersey Turnpike Authority RB TOB (Eagle Trust Project) 4.84%, 01/07/01 5,000 5,000 Port Authority of New York & New Jersey TOBP (PA-518) 4.74%, 01/07/01 3,390 3,390 Port Authority of New York and New Jersey Special Obligation RB TOB Series 805 4.65%, 01/07/01 2,300 2,300 -------- 76,010 -------- PENNSYLVANIA -- 3.1% Delaware River Port Authority of Pennsylvania & New Jersey Revenue TOBP (PA-611) 4.74%, 01/07/01 9,995 9,995 -------- PUERTO RICO -- 0.3% Puerto Rico Commonwealth Public Improvement TOB Series 3 4.44%, 01/07/01 1,000 1,000 -------- TOTAL VARIABLE RATE TENDER OPTION BONDS (Cost $87,005) 87,005 -------- BOND ANTICIPATION NOTES -- 17.2% (c) East Brunswick Township, New Jersey BAN 3.87%, 01/05/01 1,000 1,000 4.07%, 01/05/01 1,000 1,000 4.09%, 01/05/01 4,000 4,000 4.20%, 01/04/02 (d) 4,368 4,385 Fair Lawn, New Jersey BAN 4.25%, 12/14/01 3,145 3,152 Gloucester County, New Jersey BAN Series 2000A 4.28%, 07/31/01 5,300 5,314 Passaic County, New Jersey BAN 4.20%, 03/30/01 4,000 4,003 4.40%, 03/30/01 4,839 4,839 4.25%, 09/21/01 4,000 4,010 88 Par Value -------- -------- Princeton, New Jersey BAN 4.10%, 03/29/01 $ 2,000 $ 2,001 Ringwood, New Jersey BAN 4.12%, 03/16/01 6,373 6,378 South Brunswick Township, New Jersey BAN 4.25%, 11/01/01 5,000 5,016 Woodbrdige Township, New Jersey BAN 4.30%, 07/27/01 10,000 10,024 -------- TOTAL BOND ANTICIPATION NOTES (Cost $55,122) 55,122 -------- TAX-EXEMPT COMMERCIAL PAPER -- 9.3% (c) New Jersey State Transportation Commission TECP 4.10%, 03/07/01 21,000 21,000 4.30%, 04/11/01 8,000 8,000 4.25%, 06/14/01 1,000 1,000 -------- TOTAL TAX-EXEMPT COMMERCIAL PAPER (Cost $30,000) 30,000 -------- FIXED RATE TENDER OPTION BONDS -- 6.0% (c)(e)(f) New Jersey State Housing & Mortgage Finance Agency Revenue TOBP (PT-285) 4.45%, 08/09/01 19,060 19,109 -------- TOTAL FIXED RATE TENDER OPTION BONDS (Cost $19,109) 19,109 -------- REVENUE BONDS -- 5.3% (c) New Jersey Economic Development Authority RB (New Jersey Performing Arts Center) 4.20%, 06/15/01 1,000 1,031 New Jersey Health Care Facilities RB (Ocean County Medical Center) (f) 4.24%, 07/01/01 2,755 2,842 New Jersey State Educational Facilities Authority RB (Princeton University) Series 2000E 4.38%, 07/01/01 1,425 1,433 Par Value -------- -------- New Jersey State Highway Authority Revenue Refunding Bonds (Garden State Parkway Project) 4.20%, 01/01/01 $ 420 $ 420 New Jersey State Transportation Trust Fund Authority Transportation System RB Series 1995A (f) 4.25%, 06/15/01 4,715 4,751 New Jersey State Transportation Trust Fund Authority Transportation System RB Series 1997A 4.22%, 06/15/01 4,405 4,420 New Jersey State Transportation Trust Fund Authority Transportation System RB Series 1999A 4.25%, 06/15/01 2,000 2,004 -------- TOTAL REVENUE BONDS (Cost $16,901) 16,901 -------- GENERAL OBLIGATIONS -- 2.4% (c) Monmouth County, New Jersey Refunding GO Series 1998B 4.24%, 08/01/01 1,900 1,903 New Jersey State GO Series 1996E 3.49%, 07/15/01 3,750 3,774 New Jersey State Governmental GO 4.25%, 08/01/01 1,900 1,916 -------- TOTAL GENERAL OBLIGATIONS (Cost $7,593) 7,593 -------- TOTAL INVESTMENTS -- 99.7% (Cost $319,590) 319,590 -------- OTHER ASSETS AND LIABILITIES -- 0.3% Other assets 5,511 Liabilities (4,496) -------- 1,015 -------- TOTAL NET ASSETS -- 100.0% $320,605 ======== SEE ACCOMPANYING NOTES TO SCHEDULES OF INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. 89 SCHWAB PENNSYLVANIA MUNICIPAL MONEY FUND SCHEDULE OF INVESTMENTS (in thousands) December 31, 2000 Par Value ------- -------- VARIABLE RATE OBLIGATIONS-- 51.9% (b)(f) Allegheny County, Pennsylvania IDA RB (Saureisen Project) 5.10%, 01/07/01 $ 1,400 $ 1,400 Berks County, Pennsylvania IDA RB (Beacon Container Project) 5.05%, 01/07/01 1,800 1,800 Bucks County, Pennsylvania IDA RB (Klearfold Project) 5.10%, 01/07/01 4,000 4,000 Bucks County, Pennsylvania IDA RB (Schuman & Sons Project) 4.95%, 01/07/01 3,055 3,055 Cambria County, Pennsylvania IDA Resource Recovery RB (Cambria Cogen Co. Project) 4.80%, 01/07/01 10,200 10,200 Central Bucks, Pennsylvania School District GO Series 2000A 4.92%, 01/07/01 2,000 2,000 Chester County, Pennsylvania Health & Education Facilities Authority RB (Simpson Meadows Project) Series 2000 4.95%, 01/07/01 4,000 4,000 Delaware County, Pennsylvania IDA RB (YMCA of Philadelphia Project) Series 1999 4.90%, 01/07/01 1,745 1,745 Lancaster County, Pennsylvania Hospital Authority RB (Brethren Village) 4.92%, 01/07/01 1,700 1,700 Lebanon County, Pennsylvania Health Facilities RB (ECC Retirement Village Project 4.92%, 01/07/01 1,000 1,000 Montgomery County , Pennsylvania IDA Environmental Facilities RB (Lonza, Inc. Project) 4.98%, 01/07/01 3,000 3,000 Montgomery County, Pennsylvania M/F Housing RB (Glenmore Association) Series A 5.00%, 01/07/01 3,500 3,500 North Hampton County, Pennsylvania IDA RB (Binney & Smith) Series A 4.95%, 01/07/01 3,250 3,250 Par Value ------- -------- Northampton County, Pennsylvania IDA RB (Binney & Smith) Series B 4.85%, 01/07/01 $ 930 $ 930 Pennsylvania Economic Development Financing Authority Exempt Facilities RB (Merck & Company Project) Series 2000 4.94%, 01/07/01 5,000 5,000 Pennsylvania Energy Development Authority RB (B&W Ebensburg Project) Series 1986 4.80%, 01/07/01 9,075 9,075 Pennsylvania Energy Development Authority RB (Piney Creek Project) Series 1986A 4.80%, 01/07/01 8,000 8,000 Pennsylvania Energy Development Authority RB (Piney Creek Project) Series 1986C 4.80%, 01/07/01 1,155 1,155 Pennsylvania Higher Education Assistance Agency Student Loan RB Series 1988C 4.75%, 01/07/01 9,000 9,000 Pennsylvania Higher Education Assistance Agency Student Loan RB Series 2000A 5.00%, 01/07/01 14,800 14,800 Pennsylvania State Public School Building Authority RB Series 1999D 4.92%, 01/07/01 3,255 3,255 Philadelphia, Pennsylvania IDA RB (30th Street Station Project) Series 1987 4.55%, 01/30/01 9,650 9,650 Quakertown, Pennsylvania General Authority Pooled Financing Program RB Series A 4.75%, 01/07/01 5,100 5,100 Washington County, Pennsylvania Authority RB (Girard Estate Refunding Project) Series 1999J 4.90%, 01/07/01 8,840 8,840 West Cornwall Township, Pennsylvania Municipal Authority RB (Lebanon Valley Crethren Project) 4.85%, 01/07/01 1,120 1,120 -------- TOTAL VARIABLE RATE OBLIGATIONS (Cost $116,575) 116,575 -------- 90 Par Value ------- -------- VARIABLE RATE TENDER OPTION BONDS -- 12.9% (a)(b)(f) Delaware County, Pennsylvania TOB Series 254 4.92%, 01/07/01 $ 2,958 $ 2,958 Pennsylvania Convention Center Authority RB TOBP (PT-1224) 4.87%, 01/07/01 4,845 4,845 Pennsylvania HFA S/F Mortgage RB TOBP (PT-278) Series 1999-66A 4.92%, 01/07/01 3,925 3,925 Pennsylvania HFA TOB Series 1999U 4.97%, 01/07/01 10,100 10,100 Pennsylvania State GO TOB Series 2000-3 4.94%, 01/07/01 3,700 3,700 Spring Ford Area School District, Pennsylvania TOB Series 247 4.87%, 01/07/01 3,500 3,500 -------- TOTAL VARIABLE RATE TENDER OPTION BONDS (Cost $29,028) 29,028 -------- GENERAL OBLIGATIONS -- 11.8% (c) Pennsylvania State GO 1st Series A 4.04%, 01/01/01 7,005 7,110 4.21%, 01/01/01 1,000 1,015 4.36%, 01/01/01 7,000 7,105 Pennsylvania State GO 2nd Series A 4.08%, 11/01/01 2,750 2,844 Pennsylvania State GO Series 2000 4.10%, 01/15/01 8,500 8,503 -------- TOTAL GENERAL OBLIGATIONS (Cost $26,577) 26,577 -------- REVENUE BONDS -- 10.2% (c) Allegheny County, Pennsylvania Airport Refunding RB (Pittsburgh International Airport) Series 1997A-1 (f) 4.27%, 01/01/02 2,000 2,014 Allegheny County, Pennsylvania Airport Authority RB (f) 4.00%, 01/01/01 4,125 4,125 Lycoming County, Pennsylvania Authority College RB (Pennsylvania College of Technology) Series 1993 (f) 4.17%, 11/01/01 2,280 2,314 Par Value ------- -------- Penn Delco, Pennsylvania School District RB 4.35%, 10/01/01 $ 1,000 $ 1,007 Pennsylvania State Higher Education Facilities Authority RB (Medical College) Series 1991A 4.27%, 03/01/01 1,600 1,639 Philadelphia, Pennsylvania Water & Sewer RB 16th Series 1.58%, 08/01/01 3,000 3,111 Pittsburgh, Pennsylvania Water & Sewer Authority Systems Revenue Refunding Bond Series 1991A (f) 4.25%, 09/01/01 2,000 2,022 Southeastern Pennsylvania Transportation Authority Special RB 4.19%, 03/01/01 1,295 1,297 Wilkins Area, Pennsylvania IDA RB (Fairview Extended Care Project) Series 1990A (f) 5.33%, 01/01/01 1,800 1,854 York County, Pennsylvania Hospital Authority RB (York Hospital) (f) 4.40%, 01/01/01 3,500 3,570 -------- TOTAL REVENUE BONDS (Cost $22,953) 22,953 -------- FIXED RATE TENDER OPTION BONDS -- 5.4% (c)(e)(f) Pennsylvania HFA RB TOB Series 1998Y 4.40%, 05/10/01 5,495 5,495 Pennsylvania HFA S/F Mortgage RB TOBP (PT-119A) Series 1997 4.40%, 05/10/01 3,646 3,646 Philadelphia, Pennsylvania IDRB TOBP (PA-982) (Philadelphia Airport) Series 1998A 4.45%, 03/15/01 3,000 3,000 -------- TOTAL FIXED RATE TENDER OPTION BONDS (Cost $12,141) 12,141 -------- 91 SCHWAB PENNSYLVANIA MUNICIPAL MONEY FUND SCHEDULE OF INVESTMENTS (in thousands) (continued) December 31, 2000 Par Value ------- -------- TAX-EXEMPT COMMERCIAL PAPER -- 4.0% (c) Montgomery County, Pennsylvania IDA Pollution Control Revenue Refunding TECP (f) 4.40%, 01/08/01 $ 5,900 $ 5,900 Philadelphia, Pennsylvania Gas TECP 4.25%, 03/07/01 3,000 3,000 -------- TOTAL TAX-EXEMPT COMMERCIAL PAPER (Cost $8,900) 8,900 -------- TAX AND REVENUE ANTICIPATION NOTES -- 2.7% (c) Philadelphia, Pennsylvania TRAN Series 2000A 4.36%, 06/29/01 6,000 6,018 -------- TOTAL TAX AND REVENUE ANTICIPATION NOTES (Cost $6,018) 6,018 -------- TOTAL INVESTMENTS -- 98.9% (Cost $222,192) 222,192 -------- OTHER ASSETS AND LIABILITIES -- 1.1% Other assets 2,584 Liabilities (77) -------- 2,507 -------- TOTAL NET ASSETS-- 100.0% $224,699 ======== SEE ACCOMPANYING NOTES TO SCHEDULES OF INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. 92 SCHWAB FLORIDA MUNICIPAL MONEY FUND SCHEDULE OF INVESTMENTS (in thousands) December 31, 2000 Par Value ------- ---------- VARIABLE RATE OBLIGATIONS -- 61.7% (b)(f) COLORADO -- 0.0% Colorado Student Obligation Bond Authority Student Loan RB Series 1989A 4.90%, 01/07/01 $ 100 $ 100 ---------- FLORIDA -- 60.5% Alachua County, Florida Health Facilities Authority RB (Shands Teaching Hospital Clinic Project) Series 1996 4.75%, 01/07/01 2,300 2,300 Bradford County, Florida Health Facilities Authority RB (Shands Teaching Hospital Clinic Project) Series 1996 4.75%, 01/07/01 6,500 6,500 Brevard County, Florida HFA M/F Housing Revenue Refunding Bonds (Shore View Apartment Project) 4.95%, 01/07/01 1,000 1,000 Broward County, Florida Educational Facilities Authority RB (Nova SouthEastern) Series 2000A 4.70%, 01/07/01 5,500 5,500 Broward County, Florida HFA M/F Housing RB (Fishermens Landing Project) 4.50%, 01/07/01 6,000 6,000 Broward County, Florida HFA M/F Housing RB (Landings Inverrary Apartments Project) Series 1985 4.67%, 01/07/01 6,600 6,600 Broward County, Florida HFA M/F Housing RB (Reflections Airport Project) Series 1999 4.50%, 01/07/01 12,000 12,000 Broward County, Florida HFA M/F Housing RB (Sanctuary Apartments Project) Series 1985 4.67%, 01/07/01 20,500 20,500 Broward County, Florida HFA M/F Housing RB (South Pointe Project) 4.50%, 01/07/01 4,100 4,100 Broward County, Florida Suburban Port Facilities (Port Everglades Project) Series 1998 4.80%, 01/07/01 9,400 9,400 Par Value ------- ---------- Charlotte County, Florida HFA M/F Housing RB (Murdock Circle Apartments Project) 4.72%, 01/07/01 $ 7,000 $ 7,000 Citrus Park, Florida Community Development District Capital Improvement Bonds Series 1996 4.75%, 01/07/01 1,740 1,740 Collier County, Florida HFA M/F Housing RB (River Beach Project) Series 1985 4.85%, 01/07/01 4,300 4,300 Dade County, Florida Aviation Series 1984A 4.75%, 01/07/01 2,800 2,800 Dade County, Florida IDA Exempt Facilities Revenue Refunding Bond (Florida Power & Light Co.) 4.70%, 01/01/01 1,800 1,800 Dade County, Florida IDA RB (Dolphins Stadium Project) Series 1985C 4.55%, 01/07/01 1,050 1,050 Dade County, Florida IDA RB (Michael- Ann Russell Jewish Community Center Project) Series 1997 4.70%, 01/07/01 4,685 4,685 Dade County, Florida Water & Sewer System Series 1994 4.45%, 01/07/01 1,700 1,700 Eustis, Florida Multi-Purpose RB 4.70%, 01/07/01 4,000 4,000 Florida Development Finance Corp. IDRB (Central Farms, Ltd. Project) Series 1999A4 5.15%, 01/07/01 1,640 1,640 Florida Development Finance Corp. IDRB (Pioneer Ram Project) Series 1998A3 5.15%, 01/07/01 1,340 1,340 Florida Development Finance Corp. IDRB (Schmitt Family Project) Series 1999A2 5.15%, 01/07/01 2,375 2,375 Florida Development Finance Corp. IDRB (Sunshine State Project) Series 1999A3 5.05%, 01/07/01 1,500 1,500 Florida Development Finance Corp. IDRB (Vutec Corp. Project) Series 1999A1 5.15%, 01/07/01 1,920 1,920 93 SCHWAB FLORIDA MUNICIPAL MONEY FUND SCHEDULE OF INVESTMENTS (in thousands) (continued) December 31, 2000 Par Value ------- ---------- Florida HFA M/F Housing RB (Buena Vista Project) Series 1985MM 4.45%, 01/07/01 $10,000 $ 10,000 Florida HFA Housing RB (Ashley Lake II Project) Series 1989J 4.85%, 01/07/01 10,800 10,800 Florida HFA Housing RB (Caribbean Key Apartments) Series 1996F 4.80%, 01/07/01 3,400 3,400 Florida HFA Housing RB (Heron Park Project) Series 1996U 4.85%, 01/07/01 3,605 3,605 Florida HFA Housing RB (Tiffany Club Project) Series 1996P 4.80%, 01/07/01 7,450 7,450 Florida HFA M/F Housing RB (South Pointe Project) Series 1998J 4.75%, 01/07/01 4,100 4,100 Florida HFA M/F Housing RB (Waterford Pointe) Series 2000E-1 4.55%, 01/07/01 4,155 4,155 Florida Housing Finance Corp. RB (Riverside Apartments) 4.55%, 01/07/01 7,100 7,100 Florida HFA M/F Housing RB Series 1983J 4.95%, 01/07/01 7,370 7,370 Florida Housing Finance Corp. Housing RB (Heritage Pointe Project) Series 1999I-1 4.55%, 01/07/01 4,750 4,750 Florida Housing Finance Corp. Housing RB (Timberline Apartments) Series 1999P 4.70%, 01/07/01 2,500 2,500 Florida Housing Finance Corp. Housing RB (Valencia Village Apartments Project) Series 1999G-1 4.55%, 01/07/01 5,875 5,875 Florida Housing Finance Corp. M/F Housing RB (Buchanan Bay Townhomes Project) Series 1998S 5.05%, 01/07/01 6,725 6,725 Florida Ocean Highway & Port Authority RB Series 1990 5.10%, 01/07/01 12,100 12,100 Par Value ------- ---------- Florida State Finance Authority (Florida Hospital Association - Capital Projects Loan Program) Series 1998A 4.50%, 01/07/01 $66,800 $ 66,800 Gainesville, Florida IDA (Exactech, Inc. Project) 5.10%, 01/07/01 3,600 3,600 Gainesville, Florida IDRB (Lifes Community Blood Centers, Inc.) Series 1999 4.70%, 01/07/01 3,100 3,100 Gulf Breeze, Florida RB (Local Government Loan Program) Series 1985C 4.50%, 01/07/01 7,305 7,305 Gulf Breeze, Florida RB (Local Government Loan Program) Series 1985E 4.50%, 01/07/01 26,260 26,260 Halifax, Florida Health Care Facilities Hospital Medical Center RB (Health Care Plan, Inc. Project) 4.40%, 01/07/01 5,200 5,200 Highlands County, Florida Health Facility Authority RB (Adventist Health Systems Project) Series 1997A 4.80%, 01/07/01 13,875 13,875 Hillsborough County, Florida IDA RB (Independent Day School Project) 4.30%, 01/07/01 6,500 6,500 Hillsborough County, Florida IDA RB (Tampa Metropolitan YMCA Project) Series 2000K 5.05%, 01/07/01 9,400 9,400 Hillsborough County, Florida Aviation Authority Special Purpose Revenue Refunding Bond (Delta Airlines Project) 4.45%, 01/07/01 2,300 2,300 Hillsborough County, Florida Educational Facilities Authority RB (University of Tampa Project) 5.05%, 01/07/01 5,900 5,900 Hillsborough County, Florida IDA Education Facilities RB (Berkeley Preparatory School) Series 1999 5.00%, 01/07/01 2,550 2,550 94 Par Value ------- ---------- Hillsborough County, Florida IDA Pollution Control RB (Tampa Electric- Gannon Project) 4.95%, 01/01/01 $12,900 $ 12,900 Jacksonville, Florida Electric Authority Water & Sewer Systems RB Series 2000B 4.50%, 01/07/01 1,250 1,250 Jacksonville, Florida Industrial Development Revenue Refunding Bonds (Pavilion Associates Project) 4.50%, 01/07/01 5,400 5,400 Jacksonville, Florida RB (Capital Project) 4.65%, 01/07/01 390 390 Jacksonville, Flordia Economic Development Community RB (Bolles School Project) Series 1999A 4.40%, 01/07/01 3,485 3,485 Lakeland, Florida Educational Facilities RB (Florida Southern College Project) Series 1999 5.00%, 01/07/01 30,000 30,000 Lee County, Florida HFA M/F Housing RB (Cape Coral Apartments Project) Series 1999A 4.72%, 01/07/01 6,160 6,160 Lee County, Florida IDA Health Care Facilities Revenue Refunding & Improvement Bond (Hope Hospice Project) 4.30%, 01/07/01 4,700 4,700 Lee County, Florida IDA Educational Facilities RB (Canterbury School, Inc. Project) 5.00%, 01/01/01 5,000 5,000 Manatee County, Florida HFA M/F Housing RB (Centre Court Apartments Project) Series 2000A 4.55%, 01/07/01 3,850 3,850 Manatee County, Florida HFA M/F Housing RB (Hampton McGuire Project) Series 1989A 4.40%, 01/07/01 3,100 3,100 Manatee County, Florida HFA M/F Housing RB (Sabal Palm Harbor Project) Series 2000A 4.72%, 01/07/01 7,300 7,300 Par Value ------- ---------- Manatee County, Florida IDRB (Trilectron Industries Project) Series 1997A 4.65%, 01/07/01 $ 2,000 $ 2,000 Miami-Dade County, Florida Educational Facilities Authority RB (Carlos Albizu University Project) 5.05%, 01/07/01 5,000 5,000 Miami-Dade County, Florida IDRB (Gulliver Schools Project) Series 2000 5.05%, 01/07/01 9,450 9,450 Miami-Dade County, Florida IDA Airport Facilities RB (Flight Safety Project) Series 1999A 5.10%, 01/07/01 21,500 21,500 Miami-Dade County, Florida IDA IDRB (Airbus Service Co. Project) Series 1998A 4.55%, 01/07/01 9,830 9,830 Miami-Dade County, Florida IDA IDRB (Arctic Partners, Ltd. Project) 5.15%, 01/07/01 2,240 2,240 Miami-Dade County, Florida IDA IDRB (Badia Spices, Inc. Project) 5.10%, 01/07/01 4,475 4,475 Miami-Dade County, Florida IDA IDRB (Belen Jesuit Preparatory School Project) Series 1999 5.00%, 01/07/01 7,760 7,760 Miami-Dade County, Florida IDA IDRB (Fine Arts Lamps Project) Series 1998 5.10%, 01/07/01 1,900 1,900 Miami, Florida Health Facilities Authority RB (Jewish Home for the Aged, Inc. Project) Series 1996 5.00%, 01/07/01 9,500 9,500 Okeechobee County, Florida Exempt Facility RB (Okeechobee Landfill, Inc. Project) Series 1999 5.05%, 01/07/01 15,000 15,000 Orange County, Florida Educational Facilities Authority Educational Facilities RB (Rollins College Project) Series 1999 5.00%, 01/07/01 7,900 7,900 95 SCHWAB FLORIDA MUNICIPAL MONEY FUND SCHEDULE OF INVESTMENTS (in thousands) (continued) December 31, 2000 Par Value ------- ---------- Orange County, Florida Health Facilities Authority RB (Adventist Health Systems) Series 1992B 4.95%, 01/07/01 $ 3,800 $ 3,800 Orange County, Florida Health Facilities Authority RB (Florida Hospital Association Health Facility Loan Program) Series 2000A 4.90%, 01/07/01 35,000 35,000 Orange County, Florida HFA (Highland Pointe Apartments Project) Series 1988J 4.50%, 01/07/01 7,855 7,855 Orange County, Florida HFA M/F Housing RB (Andover Place Apartments) 4.80%, 01/07/01 7,770 7,770 Orange County, Florida HFA M/F Housing RB (West Pointe Villas Project) Series 2000F 4.55%, 01/07/01 5,750 5,750 Orange County, Florida HFA M/F Housing RB Series 2000G 4.72%, 01/07/01 3,200 3,200 Orange County, Florida IDA IDRB (Central Florida Kidney Centers Project) 4.90%, 01/07/01 5,000 5,000 Orange County, Florida IDA IDRB (Goodwill Industries, Inc. Project) 5.00%, 01/07/01 6,000 6,000 Orange County, Florida M/F Housing RB (Smokewood Project) Series A 4.85%, 01/07/01 19,950 19,950 Orange County, Florida IDA (Center For Drug Free Living Project) 4.40%, 01/07/01 10,085 10,085 Orange County, Florida School Board COP Series 2000B 4.90%, 01/07/01 17,400 17,400 Orlando, Florida Special Assessment RB (Republic Drive Interchange Project) 4.60%, 01/07/01 18,850 18,850 Palm Beach County, Florida Airport RB (Galaxy Aviation Project) Series 2000A 5.10%, 01/07/01 6,000 6,000 Palm Beach County, Florida Health Facilities Authority Revenue Refunding Bonds (Joseph L. Morse Geriatric Center) 4.80%, 01/07/01 9,555 9,555 Par Value ------- ---------- Palm Beach County, Florida HFA M/F Housing RB (Azalea Place Apartments Project) Series 1999A 4.72%, 01/07/01 $ 2,600 $ 2,600 Palm Beach County, Florida IDRB (Benjamin Private School Project) 5.00%, 01/07/01 9,000 9,000 Palm Beach County, Florida IDRB (Palm Beach Day Care School Project) Series 1999 3.80%, 01/07/01 5,000 5,000 Palm Beach County, Florida RB (Complete Alcohol Rehabilitation Project) 4.95%, 01/07/01 5,900 5,900 Palm Beach County, Florida RB (Norton Gallery Art School Project) Series 1995 4.90%, 01/07/01 2,300 2,300 Pasco County, Florida COP 4.80%, 01/07/01 40,700 40,700 Pasco County, Florida Education Facility Authority RB (St. Leo University Project) 4.94%, 01/07/01 2,650 2,650 Pinellas County, Florida Independent Council RB (Operation Par, Inc. Project) Series 1999 4.45%, 01/07/01 6,505 6,505 Pinellas County, Florida Educational Facilities Authority RB (Caterbury School of Florida Project) 4.50%, 01/07/01 4,500 4,500 Pinellas County, Florida HFA M/F Housing RB (Mariners Pointe Apartments) 4.55%, 01/07/01 4,900 4,900 Pinellas County, Florida Industry Council IDRB (Better Business Forms, Inc. Project) Series 1997 5.10%, 01/07/01 2,800 2,800 Plant City, Florida Hospital RB (Southern Florida Baptist Hospital Project) 4.85%, 01/07/01 9,940 9,940 Polk County, Florida IDA IDRB (Juice Bowl Products, Inc. Project) 5.10%, 01/07/01 3,100 3,100 Polk County, Florida IDA RB (Farmland Hydro Project) 5.05%, 01/07/01 6,000 6,000 96 Par Value ------- ---------- Polk County, Florida IDA RB (Pavermodule, Inc. Project) 5.10%, 01/07/01 $ 4,210 $ 4,210 Polk County, Florida IDA RB (Young Florida Project) Series 1996 4.55%, 01/07/01 1,820 1,820 Riviera Beach, Florida IDRB (Sunshine Farms Poultry Project) 5.10%, 01/07/01 2,400 2,400 SouthEast Volusia, Florida Hospital District RB (Bert Fish Medical Center Project) Series 1995 4.85%, 01/07/01 12,505 12,505 St. Lucie County, Florida IDRB (Savannah Hospital Project) 5.05%, 01/07/01 6,925 6,925 St. Petersburg, Florida Capital Improvement RB (Airport & Golf Course Project) Series 1997C 5.10%, 01/07/01 775 775 St. Petersburg, Florida Capital Improvement RB (Airport & Golf Course Project) Series B 5.00%, 01/07/01 2,620 2,620 Sarasota County, Florida RB (Sarasota County Family YMCA Project) 4.40%, 01/07/01 3,600 3,600 Sumter County, Florida IDA RB (Robbins Manufacturing Project) Series 1997 4.60%, 01/07/01 1,960 1,960 Tallahassee & Leon County, Florida Civic Center Authority Capital Improvement RB Series A 5.00%, 01/07/01 7,000 7,000 Tampa, Florida Occupational License Tax RB Series 1996A 4.75%, 01/07/01 7,885 7,885 Tampa, Florida RB (Tampa Prep School Project) 4.40%, 01/07/01 10,000 10,000 Volusia County, Florida Health Facilities Authority RB (South West Volusia Health Project) Series 1994A 4.40%, 01/07/01 8,480 8,480 West Orange Healthcare District, Florida RB Series 1999B 4.70%, 01/07/01 500 500 ---------- 867,350 ---------- Par Value ------- ---------- IDAHO -- 0.2% Idaho HFA Housing RB (Assisted Living Concepts Project) 5.10%, 01/07/01 $ 2,815 $ 2,815 ---------- ILLINOIS -- 1.0% Chicago, Illinois Gas Supply RB (Peoples Gas, Light & Coke Co. Project) Series 1993B 4.30%, 01/07/01 1,000 1,000 Chicago, Illinois O'Hare International Airport RB ACES (General Airport Second Lien) Series B1 5.10%, 01/07/01 700 700 Chicago, Illinois O'Hare International Airport Special Facility RB 4.90%, 01/07/01 13,100 13,100 ---------- 14,800 ---------- PENNSYLVANIA -- 0.0% Cambria County, Pennsylvania IDA Resource Recovery RB (Cambria Cogen Co. Project) 4.80%, 01/07/01 700 700 ---------- TOTAL VARIABLE RATE OBLIGATIONS (Cost $885,765) 885,765 ---------- VARIABLE RATE TENDER OPTION BONDS -- 11.2% (a)(b)(f) FLORIDA -- 8.3% Dade County, Florida Special Obligation TOB Series 415 4.94%, 01/07/01 7,995 7,995 Escambia County, Florida HFA S/F Mortgage RB TOB Series 1997D 4.99%, 01/07/01 8,350 8,350 Florida Housing Finance Corp. RB TOB Series 2000J 4.96%, 01/07/01 5,000 5,000 Florida Housing Finance Corp. RB TOBP (PT-471) 4.32%, 01/07/01 15,035 15,035 Florida State Board of Education Capital Outlay TOB Series 137 4.70%, 01/07/01 17,975 17,975 Florida State Board of Education Capital Outlay TOB Series 190 4.92%, 01/07/01 1,175 1,175 97 SCHWAB FLORIDA MUNICIPAL MONEY FUND SCHEDULE OF INVESTMENTS (in thousands) (continued) December 31, 2000 Par Value ------- ---------- Florida State Board of Education Capital Outlay TOB Series 1998E 4.94%, 01/07/01 $ 6,180 $ 6,180 Florida State Board of Education Capital Outlay TOB Series 223 4.94%, 01/07/01 3,070 3,070 Florida State Board of Education Capital Outlay TOB Series 286 4.92%, 01/07/01 2,675 2,675 Florida State Board of Finance Department General Services RB TOB Series 317 4.92%, 01/07/01 5,000 5,000 Florida State Turnpike Authority Turnpike RB TOB Series 273 4.92%, 01/07/01 2,945 2,945 Fort Meyers, Florida Utility Revenue Refunding TOB Series 1999A 4.92%, 01/07/01 2,495 2,495 Hillsborough County, Florida Capital Improvement Program RB TOB Series 222 4.92%, 01/07/01 5,230 5,230 Jacksonville, Florida Electric Authority RB TOB Series 2000FF 4.70%, 01/07/01 1,700 1,700 Jacksonville, Florida Electric Authority RB TOB Series 211 4.92%, 01/07/01 7,185 7,185 Jacksonville, Florida Electric Authority RB TOB Series 226 4.92%, 01/07/01 2,500 2,500 Jacksonville, Florida Port Authority TOB 4.96%, 01/07/01 10,100 10,100 Lee County, Florida Airport RB TOBP (PA-679) 4.99%, 01/07/01 2,745 2,745 Palm Beach County, Florida Criminal Justice Facilities TOB Series 191 4.92%, 01/07/01 7,495 7,495 Pinellas County, Florida HFA S/F Housing RB TOBP (PT-352) 4.99%, 01/07/01 4,475 4,475 ---------- 119,325 ---------- Par Value ------- ---------- GEORGIA -- 1.8% Atlanta, Georgia Water & Wastewater RB TOB Series 398 4.94%, 01/07/01 $16,000 $ 16,000 Georgia State GO TOB Series 2000I-16 4.31%, 01/07/01 4,950 4,950 Georgia State GO TOB Series 213 4.92%, 01/07/01 5,000 5,000 ---------- 25,950 ---------- TENNESSEE -- 0.3% Tennessee HDA Mortgage Finance TOB Series 1997K 5.04%, 01/07/01 3,995 3,995 ---------- TEXAS -- 0.8% Lower Colorado River Authority, Texas Revenue Refunding Bonds TOB Series 1999A 4.94%, 01/07/01 10,770 10,770 ---------- TOTAL VARIABLE RATE TENDER OPTION BONDS (Cost $160,040) 160,040 ---------- REVENUE BONDS -- 5.9% (c) COLORADO -- 0.2% Denver, Colorado City & County Airport Prerefunded RB Series 1991D 4.48%, 11/15/01 2,175 2,221 ---------- FLORIDA -- 3.3% Florida Ports Financing Commission State Transportation Trust Fund RB (f) 4.35%, 06/01/01 3,435 3,451 Florida State Board of Finance Department of General Services Revenue Refunding Bonds (Save Our Coast Department of Nature Resources) (f) 4.30%, 07/01/01 1,000 1,008 Florida State Turnpike Authority RB (f) 4.33%, 07/01/01 2,000 2,018 George L. Smith II, Georgia World Congress Center Authority Revenue Refunding Bond (Domed Stadium Project) (f) 4.43%, 07/01/01 5,005 5,037 98 Par Value ------- ---------- Hillsborough County, Florida Aviation Authority Revenue Refunding Bond (Tampa International Airport) Series 1997A (f) 4.33%, 10/01/01 $ 6,130 $ 6,160 Homestead, Florida Special Insurance Assessment RB (f) 4.13%, 03/01/01 1,000 1,001 Inland Protection Financing Corp., Florida Special Obligation RB (f) 4.22%, 01/01/01 5,200 5,200 Pasco County, Florida Solid Waste Disposal & Resources Recovery System RB (f) 4.32%, 04/01/01 3,000 3,008 Pinellas County, Florida Capital Imprvoement RB 4.38%, 01/01/01 17,010 17,010 Tampa, Florida Water & Sewer Revenue Refunding Bond Series 1998B (f) 4.30%, 10/01/01 4,090 4,111 ---------- 48,004 ---------- INDIANA -- 0.4% (f) Indianapolis, Indiana Airport Authority Revenue Refunding Bond Series 1998A 4.40%, 07/01/01 5,290 5,292 ---------- OKLAHOMA -- 0.5% Oklahoma State Turnpike Authority RB Series 1992A 4.34%, 01/01/01 7,000 7,000 ---------- OREGON -- 0.2% Oregon State RB (Veterans Welfare Project) Series 2000-80B 4.26%, 10/01/01 3,250 3,250 ---------- SOUTH CAROLINA -- 0.3% (f) Piedmont Municipal Power Agency, South Carolina Electric RB Series 1996B 4.28%, 01/01/01 5,000 5,000 ---------- TENNESSEE -- 0.2% (f) Metropolitan Nashville Airport Authority, Tennessee Airport RB Series 1991A 4.38%, 07/01/01 3,000 3,030 ---------- Par Value ------- ---------- TEXAS -- 0.1% University of Texas Permanent University Fund Revenue Refunding Bonds 5.12%, 07/01/01 $ 1,000 $ 1,029 ---------- WASHINGTON -- 0.7% (f) Spokane County, Washington Airport RB 4.49%, 10/01/01 750 750 Washington State Public Power Supply System Revenue Refunding Bonds (Nulcear Project No. 1) Series 1991A 4.35%, 07/01/01 1,000 1,031 Washington State Public Power Supply System Revenue Refunding Bonds (Nulcear Project No. 2) Series 1990C 4.38%, 01/01/01 1,370 1,398 Washington State Public Power Supply System Revenue Refunding Bonds (Nulcear Project No. 2) Series 1993A 4.35%, 07/01/01 5,000 5,022 Washington State Public Power Supply System Revenue Refunding Bonds (Nulcear Project No. 2) Series 1996A 4.35%, 07/01/01 1,000 1,003 ---------- 9,204 ---------- TOTAL REVENUE BONDS (Cost $84,030) 84,030 ---------- TAX-EXEMPT COMMERCIAL PAPER -- 5.6% (c) Florida Local Government Finance Commission Pooled TECP Series A 4.40%, 01/19/01 480 480 4.40%, 03/15/01 5,891 5,891 4.25%, 05/08/01 3,500 3,500 4.25%, 06/07/01 7,763 7,763 Florida Local Government Finance Commission Pooled TECP Series B 4.45%, 01/19/01 2,957 2,957 4.30%, 06/07/01 2,500 2,500 Hillsborough County, Florida Capital Improvement TECP Series A (f) 4.30%, 02/01/01 5,000 5,000 4.05%, 05/10/01 11,750 11,750 Orange County, Florida HFA Pooled Hospital Loan TECP (f) 4.45%, 01/10/01 10,000 10,000 99 SCHWAB FLORIDA MUNICIPAL MONEY FUND SCHEDULE OF INVESTMENTS (in thousands) (continued) December 31, 2000 Par Value ------- ---------- Orange County, Florida TECP Series A (f) 4.30%, 02/01/01 $ 3,000 $ 3,000 4.30%, 02/05/01 1,739 1,739 Sunshine State of Florida Governmental Financing Commission TECP Series 2000A (f) 4.25%, 01/03/01 25,000 25,000 ---------- TOTAL TAX-EXEMPT COMMERCIAL PAPER (Cost $79,580) 79,580 ---------- TAX ANTICIPATION NOTES -- 4.7% (c) Broward County, Florida School District TAN 4.28%, 09/11/01 20,000 20,096 Charlotee County, Florida School District TAN 4.25%, 06/29/01 9,000 9,032 Orange County, Florida School District TAN 4.30%, 09/17/01 20,000 20,096 4.32%, 09/17/01 13,500 13,562 Seminole County, Florida School District TAN 4.30%, 08/01/01 5,000 5,012 ---------- TOTAL TAX ANTICIPATION NOTES (Cost $67,798) 67,798 ---------- REVENUE ANTICIPATION NOTES -- 1.7% (c) Brevard County, Florida School Board RAN 4.20%, 04/11/01 4,475 4,480 4.28%, 05/04/01 20,000 20,022 ---------- TOTAL REVENUE ANTICIPATION NOTES (Cost $24,502) 24,502 ---------- GENERAL OBLIGATIONS -- 1.1% (c) Broward County, Florida Refunding GO Series 1992C 4.20%, 01/01/01 1,000 1,000 Dade County, Florida GO Series 1978H (f) 4.37%, 06/01/01 2,710 2,734 Florida State Board of Education Capital Outlay Public Education GO Series 1991A 4.30%, 06/01/01 5,000 5,099 Par Value ------- ---------- Florida State Board of Education Capital Outlay Public Education GO Series 1991B 6.09%, 06/01/01 $ 5,950 $ 6,060 Florida State Board of Education Capital Outlay Public Education GO Series 2000A 5.69%, 01/01/02 1,000 1,019 ---------- TOTAL GENERAL OBLIGATIONS (Cost $15,912) 15,912 ---------- FIXED RATE TENDER OPTION BONDS -- 0.5% (c)(e)(f) Oklahoma State HFA S/F Housing RB TOB 4.50%, 05/24/01 7,805 7,805 ---------- TOTAL FIXED RATE TENDER OPTION BONDS (Cost $7,805) 7,805 ---------- BOND ANTICIPATION NOTES -- 0.5% (c) Wyandotte County, Kansas City, Kansas Unified Government Temporary BAN Series 10 4.50%, 05/01/01 1,256 1,257 Wyandotte County, Kansas City, Kansas Unified Government Temporary BAN Series 11 4.50%, 05/01/01 402 402 Wyandotte County, Kansas City, Kansas Unified Government Temporary BAN Series 12 4.50%, 05/01/01 2,802 2,803 Wyandotte County, Kansas City, Kansas Unified Government Temporary BAN Series 13 4.50%, 05/01/01 1,874 1,875 Wyandotte County, Kansas City, Kansas Unified Government Temporary BAN Series 14 4.50%, 05/01/01 914 914 ---------- TOTAL BOND ANTICIPATION NOTES (Cost $7,251) 7,251 ---------- 100 Par Value ------- ---------- CERTIFICATES OF PARTICIPATION -- 0.3% (c)(f) Miami-Dade County, Florida School Board COP Series 1998C 4.35%, 08/01/01 $ 4,700 $ 4,717 ---------- TOTAL CERTIFICATES OF PARTICIPATION (Cost $4,717) 4,717 ---------- TOTAL INVESTMENTS -- 93.2% (Cost $1,337,400) 1,337,400 ---------- OTHER ASSETS AND LIABILITIES -- 6.8% Other assets 98,038 Liabilities (386) ---------- 97,652 ---------- TOTAL NET ASSETS -- 100.0% $1,435,052 ========== SEE ACCOMPANYING NOTES TO SCHEDULES OF INVESTMENTS AND NOTES TO FINANCIAL STATEMENTS. 101 NOTES TO SCHEDULES OF INVESTMENTS December 31, 2000 (All dollar amounts are in thousands unless otherwise noted) For each security, cost and carrying value for financial reporting and federal income tax purposes are the same. (a) These securities can be resold to qualified institutional buyers within seven business days. Such securities are deemed liquid in accordance with procedures adopted by the Board of Trustees. At December 31, 2000, the aggregate value of such securities held by the Schwab Municipal Money Fund, Schwab California Municipal Money Fund, Schwab New York Municipal Money Fund, Schwab New Jersey Municipal Money Fund, Schwab Pennsylvania Municipal Money Fund, and Schwab Florida Municipal Money Fund was $1,075,685, $750,680, $262,685, $87,005, $29,028 and $160,040, respectively, which represented 11.09%, 12.32%, 21.59%, 27.14%, 12.92% and 11.15% of the net assets of each fund, respectively. (b) Variable rate obligations have interest rates that vary periodically based on current market rates. Rates shown are the effective rates as of the report date. Dates shown for securities with scheduled maturities of 397 days or less represent the earlier of the demand date or next interest rate change date. Dates shown for securities with scheduled maturities greater than 397 days represent the later of the demand date or next interest rate change date. For variable rate obligations without demand features, the next interest reset date is shown. All dates shown are considered the maturity date for financial reporting purposes. (c) Interest rates represent effective yield to put or call date at time of purchase. (d) Security traded on a delayed-delivery basis. Payment and delivery is scheduled for a future time, generally within two weeks of entering into the transaction. The transaction is subject to market fluctuation and to the risk that the value may be more or less than the purchase price when the transaction was initiated. The fund has set aside sufficient investment securities as collateral for securities purchased on a delayed-delivery basis. (e) These securities have legal or contractual restrictions on resale. Such securities are deemed illiquid in accordance with procedures adopted by the Board of Trustees. At December 31, 2000, the aggregate value of such securities held by Schwab Municipal Money Fund, Schwab California Municipal Money Fund, Schwab New York Municipal Money Fund, Schwab New Jersey Municipal Money Fund, Schwab Pennsylvania Municipal Money Fund and Schwab Florida Municipal Money Fund was $321,494, $89,434, $87,670, $19,109, $12,141 and $7,805, respectively, which represented 3.31%, 1.47%, 7.21%, 5.96%, 5.40% and 0.54%, respectively, of the net assets of each fund. (f) Security has one or more third party credit enhancements. (g) Rate shown is the yield as of the report date. 102 NOTES TO SCHEDULES OF INVESTMENTS (continued) PORTFOLIO ABBREVIATIONS ACES Adjustable Convertible Extendable Securities BAN Bond Anticipation Note COP Certificates of Participation GO General Obligation HDA Housing Development Authority HFA Housing Finance Agency IDA Industrial Development Authority IDB Industrial Development Board IDRB Industrial Development Revenue Bond M/F Multi-Family RAN Revenue Anticipation Note RB Revenue Bond S/F Single Family TAN Tax Anticipation Note TECP Tax-Exempt Commercial Paper TOB Tender Option Bond TOBP Tender Option Bond Partnership TRAN Tax and Revenue Anticipation Notes SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 103 STATEMENTS OF ASSETS AND LIABILITIES (in thousands, except for net asset value per share) December 31, 2000
Schwab Schwab Schwab California New York Municipal Municipal Municipal Money Fund Money Fund Money Fund ---------- ---------- ---------- ASSETS Investments, at value (Cost: $9,628,293, $6,005,320 and $1,237,675, respectively) $9,628,293 $6,005,320 $1,237,675 Cash 2,197 -- -- Receivables: Interest 78,960 53,622 10,201 Investments sold 38,640 15,810 -- Fund shares sold 25,971 32,103 7,574 Prepaid expenses 469 90 31 ---------- ---------- ---------- Total assets 9,774,530 6,106,945 1,255,481 ---------- ---------- ---------- LIABILITIES Payables: Dividends 2,214 869 217 Investments purchased 47,465 -- 35,376 Fund shares redeemed 25,237 12,353 3,006 Investment advisory and administration fees 231 160 32 Transfer agency and shareholder service fees 521 316 64 Other liabilities 329 263 109 ---------- ---------- ---------- Total liabilities 75,997 13,961 38,804 ---------- ---------- ---------- Net assets applicable to outstanding shares $9,698,533 $6,092,984 $1,216,677 ========== ========== ========== NET ASSETS CONSIST OF Paid-in capital $9,702,641 $6,095,009 $1,216,938 Accumulated net realized loss on investments sold (4,108) (2,025) (261) ---------- ---------- ---------- $9,698,533 $6,092,984 $1,216,677 ========== ========== ========== PRICING OF SHARES $0.00001 par value (unlimited shares authorized) Outstanding Sweep Shares 6,783,991 3,924,184 797,964 Outstanding Value Advantage Shares 2,918,917 2,170,940 419,037 ---------- ---------- ---------- Total outstanding shares 9,702,908 6,095,124 1,217,001 ========== ========== ========== Net asset value, offering and redemption price per each Sweep and Value Advantage Share $1.00 $1.00 $1.00
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 104 STATEMENTS OF ASSETS AND LIABILITIES (in thousands, except for net asset value per share) December 31, 2000
Schwab Schwab Schwab New Jersey Pennsylvania Florida Municipal Municipal Municipal Money Fund Money Fund Money Fund ---------- ------------ ---------- ASSETS Investments, at value (Cost: $319,590, $222,192 and $1,337,400, respectively) $319,590 $222,192 $1,337,400 Cash 884 93 5,581 Receivables: Interest 3,513 2,471 9,017 Investments sold 1,100 -- 83,411 Prepaid expenses 14 20 29 -------- -------- ---------- Total assets 325,101 224,776 1,435,438 -------- -------- ---------- LIABILITIES Payables: Dividends 24 15 221 Investments purchased 4,385 -- -- Investment advisory fees and administration fees 10 5 27 Transfer agency and shareholder service fees 20 14 91 Other liabilities 57 43 47 -------- -------- ---------- Total liabilities 4,496 77 386 -------- -------- ---------- Net assets applicable to outstanding shares $320,605 $224,699 $1,435,052 ======== ======== ========== NET ASSETS CONSIST OF Paid-in capital $320,643 $224,731 $1,435,218 Accumulated net realized loss on investments sold (38) (32) (166) -------- -------- ---------- $320,605 $224,699 $1,435,052 ======== ======== ========== PRICING OF SHARES $0.00001 par value (unlimited shares authorized) Outstanding Sweep Shares 320,680 224,768 1,435,241 Net asset value, offering and redemption price per share $1.00 $1.00 $1.00
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 105 STATEMENTS OF OPERATIONS (in thousands) For the year ended December 31, 2000
Schwab Schwab Schwab Schwab Schwab Schwab California New York New Jersey Pennsylvania Florida Municipal Municipal Municipal Municipal Municipal Municipal Money Fund Money Fund Money Fund Money Fund Money Fund Money Fund ---------- ---------- ---------- ---------- ------------ ---------- Interest income $366,325 $204,923 $42,255 $10,500 $ 7,961 $32,055 -------- -------- ------- ------- ------- ------- Expenses: Investment advisory and administration fees 31,237 19,995 3,953 995 725 2,925 Transfer agency and shareholder service fees: Sweep Shares 28,203 17,124 3,153 1,178 858 3,466 Value Advantage Shares 6,430 4,555 859 -- -- -- Custodian and portfolio accounting fees 676 510 256 108 91 178 Registration fees 1,018 306 100 68 41 79 Professional fees 47 41 28 20 20 22 Shareholder reports 461 146 39 5 4 42 Trustees' fees 31 25 16 16 15 37 Proxy fees 627 392 72 17 14 53 Other expenses 86 54 15 8 8 12 -------- -------- ------- ------- ------- ------- 68,816 43,148 8,491 2,415 1,776 6,814 Less: expenses reduced (see Note 4) (15,251) (9,824) (2,038) (696) (522) (2,216) -------- -------- ------- ------- ------- ------- Net expenses incurred by fund 53,565 33,324 6,453 1,719 1,254 4,598 -------- -------- ------- ------- ------- ------- Net investment income 312,760 171,599 35,802 8,781 6,707 27,457 Net realized loss on investments sold (845) (961) (187) (22) (23) (152) -------- -------- ------- ------- ------- ------- Increase in net assets resulting from operations $311,915 $170,638 $35,615 $ 8,759 $ 6,684 $27,305 ======== ======== ======= ======= ======= =======
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 106 STATEMENTS OF CHANGES IN NET ASSETS (in thousands) For the year ended December 31,
Schwab Schwab California Schwab New York Municipal Money Fund Municipal Money Fund Municipal Money Fund --------------------------- ----------------------------- --------------------------- 2000 1999 2000 1999 2000 1999 ------------ ------------ ------------ ------------ ----------- ----------- Operations: Net investment income $ 312,760 $ 206,391 $ 171,599 $ 108,435 $ 35,802 $ 20,690 Net realized loss on investments sold (845) (758) (961) (270) (187) (53) ------------ ------------ ------------ ------------ ----------- ----------- Increase in net assets resulting from operations 311,915 205,633 170,638 108,165 35,615 20,637 ------------ ------------ ------------ ------------ ----------- ----------- Dividends to shareholders from net investment income (see Note 2): Sweep Shares (217,620) (149,157) (113,342) (70,760) (23,446) (13,429) Value Advantage Shares (95,140) (57,234) (58,257) (37,675) (12,356) (7,261) ------------ ------------ ------------ ------------ ----------- ----------- Total dividends to shareholders (312,760) (206,391) (171,599) (108,435) (35,802) (20,690) ------------ ------------ ------------ ------------ ----------- ----------- Capital share transactions (at $1.00 per share) (see Note 5): Proceeds from shares sold 34,546,092 29,207,646 20,665,635 15,044,804 3,876,839 2,685,061 Net asset value of shares issued in reinvestment of dividends 300,806 220,975 166,028 116,671 34,444 22,245 Payments for shares redeemed (33,508,383) (27,933,769) (19,798,339) (14,070,363) (3,594,383) (2,513,226) ------------ ------------ ------------ ------------ ----------- ----------- Increase in net assets from capital share transactions 1,338,515 1,494,852 1,033,324 1,091,112 316,900 194,080 ------------ ------------ ------------ ------------ ----------- ----------- Total increase in net assets 1,337,670 1,494,094 1,032,363 1,090,842 316,713 194,027 Net assets: Beginning of period 8,360,863 6,866,769 5,060,621 3,969,779 899,964 705,937 ------------ ------------ ------------ ------------ ----------- ----------- End of period $ 9,698,533 $ 8,360,863 $ 6,092,984 $ 5,060,621 $ 1,216,677 $ 899,964 ============ ============ ============ ============ =========== ===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 107 STATEMENTS OF CHANGES IN NET ASSETS (in thousands) For the year ended December 31,
Schwab New Jersey Schwab Pennsylvania Schwab Florida Municipal Money Fund Municipal Money Fund Municipal Money Fund --------------------------- ----------------------------- --------------------------- 2000 1999 2000 1999 2000 1999 ------------ ------------ ------------ ------------ ----------- ----------- Operations: Net investment income $ 8,781 $ 3,623 $ 6,707 $ 3,676 $ 27,457 $ 16,092 Net realized loss on investments sold (22) (16) (23) (4) (152) (14) ----------- --------- --------- --------- ----------- ----------- Increase in net assets resulting from operations 8,759 3,607 6,684 3,672 27,305 16,078 ----------- --------- --------- --------- ----------- ----------- Dividends to shareholders from net investment income (see Note 2): (8,781) (3,623) (6,707) (3,676) (27,457) (16,092) ----------- --------- --------- --------- ----------- ----------- Capital share transactions (at $1.00 per share): Proceeds from shares sold 1,223,668 686,811 827,007 571,748 3,540,268 2,586,830 Net asset value of shares issued in reinvestment of dividends 8,618 3,855 6,605 3,991 26,476 17,378 Payments for shares redeemed (1,117,762) (582,462) (772,817) (533,524) (3,346,712) (2,405,514) ----------- --------- --------- --------- ----------- ----------- Increase in net assets from capital share transactions 114,524 108,204 60,795 42,215 220,032 198,694 ----------- --------- --------- --------- ----------- ----------- Total increase in net assets 114,502 108,188 60,772 42,211 219,880 198,680 Net assets: Beginning of period 206,103 97,915 163,927 121,716 1,215,172 1,016,492 ----------- --------- --------- --------- ----------- ----------- End of period $ 320,605 $ 206,103 $ 224,699 $ 163,927 $ 1,435,052 $ 1,215,172 =========== ========= ========= ========= =========== ===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 108 FINANCIAL HIGHLIGHTS
Schwab Municipal Money Fund - ----------------------------------------------------------------------------------------------------------- 1/1/00- 1/1/99- 1/1/98- 1/1/97- 1/1/96- SWEEP SHARES 12/31/00 12/31/99 12/31/98 12/31/97 12/31/96 - ----------------------------------------------------------------------------------------------------------- PER-SHARE DATA ($) - ----------------------------------------------------------------------------------------------------------- Net asset value at beginning of period 1.00 1.00 1.00 1.00 1.00 --------------------------------------------------- Income from investment operations: Net investment income 0.03 0.03 0.03 0.03 0.03 --------------------------------------------------- Total from investment operations 0.03 0.03 0.03 0.03 0.03 Less distributions: Dividends from net investment income (0.03) (0.03) (0.03) (0.03) (0.03) --------------------------------------------------- Total distributions (0.03) (0.03) (0.03) (0.03) (0.03) --------------------------------------------------- Net asset value at end of period 1.00 1.00 1.00 1.00 1.00 --------------------------------------------------- Total return (%) 3.53 2.70 2.92 3.11 2.92 RATIOS/SUPPLEMENTAL DATA (%) - ----------------------------------------------------------------------------------------------------------- Ratio of net operating expenses to average net assets 0.66 1 0.66 0.66 0.66 1 0.66 Expense reductions reflected in above ratio 0.17 0.19 0.22 0.24 0.24 Ratio of net investment income to average net assets 3.47 2.67 2.87 3.06 2.89 Net assets, end of period ($ X 1,000,000) 6,780 6,090 5,247 4,424 3,869
- ----------------------------------------------------------------------------------------------------------- 1/1/00- 1/1/99- 1/1/98- 1/1/97- 1/1/96- VALUE ADVANTAGE SHARES 12/31/00 12/31/99 12/31/98 12/31/97 12/31/96 - ----------------------------------------------------------------------------------------------------------- PER-SHARE DATA ($) - ----------------------------------------------------------------------------------------------------------- Net asset value at beginning of period 1.00 1.00 1.00 1.00 1.00 --------------------------------------------------- Income from investment operations: Net investment income 0.04 0.03 0.03 0.03 0.03 --------------------------------------------------- Total income from investment operations 0.04 0.03 0.03 0.03 0.03 Less distributions: Dividends from net investment income (0.04) (0.03) (0.03) (0.03) (0.03) --------------------------------------------------- Total distributions (0.04) (0.03) (0.03) (0.03) (0.03) --------------------------------------------------- Net asset value at end of period 1.00 1.00 1.00 1.00 1.00 --------------------------------------------------- Total return (%) 3.75 2.91 3.14 3.32 3.14 RATIOS/SUPPLEMENTAL DATA (%) - ----------------------------------------------------------------------------------------------------------- Ratio of net operating expenses to average net assets 0.45 2 0.45 0.45 0.45 2 0.45 Expense reductions reflected in above ratio 0.18 0.20 0.24 0.27 0.30 Ratio of net investment income to average net assets 3.70 2.89 3.08 3.29 3.10 Net assets, end of period ($ X 1,000,000) 2,919 2,270 1,620 1,085 608 1 Would have been 0.67% if certain non-routine expenses (proxy fees) had been included. 2 Would have been 0.46% if certain non-routine expenses (proxy fees) had been included.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 109 FINANCIAL HIGHLIGHTS
Schwab California Municipal Money Fund - ----------------------------------------------------------------------------------------------------------- 1/1/00- 1/1/99- 1/1/98- 1/1/97- 1/1/96- SWEEP SHARES 12/31/00 12/31/99 12/31/98 12/31/97 12/31/96 - ----------------------------------------------------------------------------------------------------------- PER-SHARE DATA ($) - ----------------------------------------------------------------------------------------------------------- Net asset value at beginning of period 1.00 1.00 1.00 1.00 1.00 --------------------------------------------------- Income from investment operations: Net investment income 0.03 0.02 0.03 0.03 0.03 --------------------------------------------------- Total from investment operations 0.03 0.02 0.03 0.03 0.03 Less distributions: Dividends from net investment income (0.03) (0.02) (0.03) (0.03) (0.03) --------------------------------------------------- Total distributions (0.03) (0.02) (0.03) (0.03) (0.03) --------------------------------------------------- Net asset value at end of period 1.00 1.00 1.00 1.00 1.00 --------------------------------------------------- Total return (%) 3.02 2.42 2.64 2.95 2.80 RATIOS/SUPPLEMENTAL DATA (%) - ----------------------------------------------------------------------------------------------------------- Ratio of net operating expenses to average net assets 0.65 1 0.65 0.65 0.65 1 0.65 Expense reductions reflected in above ratio 0.18 0.20 0.24 0.26 0.27 Ratio of net investment income to average net assets 2.98 2.41 2.60 2.91 2.77 Net assets, end of period ($ X 1,000,000) 3,923 3,457 2,611 2,155 1,816
- ----------------------------------------------------------------------------------------------------------- 1/1/00- 1/1/99- 1/1/98- 1/1/97- 1/1/96- VALUE ADVANTAGE SHARES 12/31/00 12/31/99 12/31/98 12/31/97 12/31/96 - ----------------------------------------------------------------------------------------------------------- PER-SHARE DATA ($) - ----------------------------------------------------------------------------------------------------------- Net asset value at beginning of period 1.00 1.00 1.00 1.00 1.00 --------------------------------------------------- Income from investment operations: Net investment income 0.03 0.03 0.03 0.03 0.03 --------------------------------------------------- Total income from investment operations 0.03 0.03 0.03 0.03 0.03 Less distributions: Dividends from net investment income (0.03) (0.03) (0.03) (0.03) (0.03) --------------------------------------------------- Total distributions (0.03) (0.03) (0.03) (0.03) (0.03) --------------------------------------------------- Net asset value at end of period 1.00 1.00 1.00 1.00 1.00 --------------------------------------------------- Total return (%) 3.22 2.62 2.84 3.15 3.01 RATIOS/SUPPLEMENTAL DATA (%) - ----------------------------------------------------------------------------------------------------------- Ratio of net operating expenses to average net assets 0.45 2 0.45 0.45 0.45 2 0.45 Expense reductions reflected in above ratio 0.17 0.20 0.25 0.27 0.32 Ratio of net investment income to average net assets 3.20 2.60 2.79 3.12 2.98 Net assets, end of period ($ X 1,000,000) 2,170 1,604 1,359 937 507 1 Would have been 0.66% if certain non-routine expenses (proxy fees) had been included. 2 Would have been 0.46% if certain non-routine expenses (proxy fees) had been included.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 110 FINANCIAL HIGHLIGHTS
Schwab New York Municipal Money Fund - ----------------------------------------------------------------------------------------------------------- 1/1/00- 1/1/99- 1/1/98- 1/1/97- 1/1/96- SWEEP SHARES 12/31/00 12/31/99 12/31/98 12/31/97 12/31/96 - ----------------------------------------------------------------------------------------------------------- PER-SHARE DATA ($) - ----------------------------------------------------------------------------------------------------------- Net asset value at beginning of period 1.00 1.00 1.00 1.00 1.00 --------------------------------------------------- Income from investment operations: Net investment income 0.03 0.03 0.03 0.03 0.03 --------------------------------------------------- Total from investment operations 0.03 0.03 0.03 0.03 0.03 Less distributions: Dividends from net investment income (0.03) (0.03) (0.03) (0.03) (0.03) --------------------------------------------------- Total distributions (0.03) (0.03) (0.03) (0.03) (0.03) --------------------------------------------------- Net asset value at end of period 1.00 1.00 1.00 1.00 1.00 --------------------------------------------------- Total return (%) 3.39 2.59 2.78 2.96 2.74 RATIOS/SUPPLEMENTAL DATA (%) - ----------------------------------------------------------------------------------------------------------- Ratio of net operating expenses to average net assets 0.69 1 0.69 0.69 0.69 1 0.69 Expense reductions reflected in above ratio 0.18 0.22 0.28 0.33 0.35 Ratio of net investment income to average net assets 3.35 2.57 2.73 2.93 2.71 Net assets, end of period ($ X 1,000,000) 798 604 468 357 271
- ----------------------------------------------------------------------------------------------------------- 1/1/00- 1/1/99- 1/1/98- 1/1/97- 1/1/96- VALUE ADVANTAGE SHARES 12/31/00 12/31/99 12/31/98 12/31/97 12/31/96 - ----------------------------------------------------------------------------------------------------------- PER-SHARE DATA ($) - ----------------------------------------------------------------------------------------------------------- Net asset value at beginning of period 1.00 1.00 1.00 1.00 1.00 --------------------------------------------------- Income from investment operations: Net investment income 0.04 0.03 0.03 0.03 0.03 --------------------------------------------------- Total income from investment operations 0.04 0.03 0.03 0.03 0.03 Less distributions: Dividends from net investment income (0.04) (0.03) (0.03) (0.03) (0.03) --------------------------------------------------- Total distributions (0.04) (0.03) (0.03) (0.03) (0.03) --------------------------------------------------- Net asset value at end of period 1.00 1.00 1.00 1.00 1.00 --------------------------------------------------- Total return (%) 3.64 2.83 3.03 3.21 2.99 RATIOS/SUPPLEMENTAL DATA (%) - ----------------------------------------------------------------------------------------------------------- Ratio of net operating expenses to average net assets 0.45 2 0.45 0.45 0.45 2 0.45 Expense reductions reflected in above ratio 0.22 0.26 0.33 0.40 0.56 Ratio of net investment income to average net assets 3.59 2.81 2.96 3.18 2.98 Net assets, end of period ($ X 1,000,000) 419 296 238 126 67 1 Would have been 0.70% if certain non-routine expenses (proxy fees) had been included. 2 Would have been 0.46% if certain non-routine expenses (proxy fees) had been included.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 111 FINANCIAL HIGHLIGHTS
Schwab New Jersey Schwab Pennsylvania Schwab Florida Municipal Money Fund Municipal Money Fund Municipal Money Fund - ------------------------------------------------------------------------------------------------------------------------------- 1/1/00- 1/1/99- 2/2/98 5- 1/1/00- 1/1/99- 2/2/98 5- 1/1/00- 1/1/99- 3/18/98 5- 12/31/00 12/31/99 12/31/98 12/31/00 12/31/99 12/31/98 12/31/00 12/31/99 12/31/98 - ------------------------------------------------------------------------------------------------------------------------------- PER-SHARE DATA ($) - ------------------------------------------------------------------------------------------------------------------------------- Net asset value at beginning of period 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 ---------------------------------------------------------------------------------------------- Income from investment operations: Net investment income 0.03 0.03 0.03 0.04 0.03 0.03 0.04 0.03 0.02 ---------------------------------------------------------------------------------------------- Total from investment operations 0.03 0.03 0.03 0.04 0.03 0.03 0.04 0.03 0.02 Less distributions: Dividends from net investment income (0.03) (0.03) (0.03) (0.04) (0.03) (0.03) (0.04) (0.03) (0.02) ---------------------------------------------------------------------------------------------- Total distributions (0.03) (0.03) (0.03) (0.04) (0.03) (0.03) (0.04) (0.03) (0.02) ---------------------------------------------------------------------------------------------- Net asset value at end of period 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 ---------------------------------------------------------------------------------------------- Total return (%) 3.38 2.58 2.60 1 3.57 2.71 2.72 1 3.62 2.78 2.37 1 RATIOS/SUPPLEMENTAL DATA (%) - ------------------------------------------------------------------------------------------------------------------------------- Ratio of net operating expenses to average net assets 0.65 3 0.65 0.65 2 0.65 3 0.65 0.65 2 0.59 4 0.59 0.59 2 Expense reductions reflected in above ratio 0.27 0.29 0.48 2 0.27 0.29 0.51 2 0.29 0.33 0.41 2 Ratio of net investment income to average net assets 3.35 2.60 2.75 2 3.52 2.68 2.85 2 3.56 2.75 2.95 2 Net assets, end of period ($ X 1,000,000) 321 206 98 225 164 122 1,435 1,215 1,016 1 Not annualized. 2 Annualized. 3 Would have been 0.66% if certain non-routine expenses (proxy fees) had been included. 4 Would have been 0.60% if certain non-routine expenses (proxy fees) had been included. 5 Commencement of operations.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 112 NOTES TO FINANCIAL STATEMENTS For the year ended December 31, 2000 (All dollar amounts are in thousands unless otherwise noted) 1. DESCRIPTION OF THE FUNDS The Schwab Municipal Money Fund, Schwab California Municipal Money Fund, Schwab New York Municipal Money Fund, Schwab New Jersey Municipal Money Fund, Schwab Pennsylvania Municipal Money Fund and Schwab Florida Municipal Money Fund (the "funds") are series of The Charles Schwab Family of Funds (the "trust"), a no-load, open-end investment management company organized as a Massachusetts business trust on October 20, 1989 and registered under the Investment Company Act of 1940, as amended, (the "1940 Act"). All funds offer Sweep Shares, and the Schwab Municipal Money Fund, Schwab California Municipal Money Fund and Schwab New York Municipal Money Fund offer an additional class of shares known as Value Advantage Shares. Both classes represent interests in the same portfolio of investments of the respective fund and are substantially the same in all respects, except that the classes are subject to different transfer agency fees (see Note 3) and investment minimums. In addition to the funds, the trust also offers Schwab Money Market Fund, Schwab Government Money fund, Schwab U.S. Treasury Money Fund, Schwab Value Advantage Money Fund(R), Schwab Institutional Advantage Money Fund(R), Schwab Retirement Money Fund(R) and Schwab Government Cash Reserves. The assets of each series are segregated and accounted for separately. 2. SIGNIFICANT ACCOUNTING POLICIES The following significant accounting policies are in conformity with generally accepted accounting principles. The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. SECURITY VALUATION -- Investments are stated at amortized cost, which approximates market value. SECURITY TRANSACTIONS, INTEREST INCOME AND REALIZED GAINS (LOSSES) -- Security transactions are accounted for on a trade date basis (date the order to buy or sell is executed). Interest income is accrued daily and includes amortization of premium and original issue discount on investments. Realized gains and losses from security transactions are determined on an identified cost basis. Income and realized gains (losses) are allocated daily to each class of shares of a fund based on the value of settled shares outstanding of each respective class. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Each fund declares a daily dividend equal to its net investment income for that day, payable monthly. Net realized capital gains, if any, are normally distributed annually. Dividends paid by a fund with respect to each class of shares are calculated in the same manner, at the same time, and will be in the same amount except for the effect of expenses that may be applied differently, as described below. 113 NOTES TO FINANCIAL STATEMENTS (continued) EXPENSES -- Expenses arising in connection with a fund or class of a fund are charged directly to that fund or that class. Expenses common to all series of the trust are generally allocated to each series in proportion to their relative net assets. Expenses attributable to both classes of shares of a fund are allocated daily to each class of that fund based on the value of settled shares outstanding of each respective class. FEDERAL INCOME TAXES -- It is each fund's policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its net investment income and realized net capital gains, if any, to shareholders. Therefore, no federal income tax provision is required. Each fund is considered a separate entity for federal income tax purposes. As of December 31, 2000, the unused capital loss carryforwards for federal income tax purposes, with expiration dates, were as follows:
Schwab Schwab Schwab Schwab Schwab Schwab California New York New Jersey Pennsylvania Florida Municipal Municipal Municipal Municipal Municipal Municipal Expiring in: Money Fund Money Fund Money Fund Money Fund Money Fund Money Fund ----------- ---------- ---------- ---------- ---------- ------------ ---------- 12/31/01 $ -- $ 56 $ -- $ -- $ -- $ -- 12/31/02 1,436 582 -- -- -- -- 12/31/03 36 -- 6 -- -- -- 12/31/04 465 93 9 -- -- -- 12/31/05 523 35 -- -- -- -- 12/31/06 -- 42 6 -- 5 1 12/31/07 775 259 53 14 -- 14 12/31/08 873 958 187 24 27 151 ------ ------ ---- ---- ---- ---- Total capital loss carryforwards $4,108 $2,025 $261 $ 38 $ 32 $166 ====== ====== ==== ==== ==== ====
RECLASSIFICATIONS -- Generally accepted accounting principles require that certain components of net assets be reclassified to reflect permanent differences between financial and tax reporting. Accordingly, permanent book/tax differences of $2 and $16 for the Schwab Municipal Money Fund and Schwab California Municipal Money Fund, respectively, were reclassified between accumulated realized capital loss and paid-in capital. These reclassifications have no effect on net assets or net asset values per share. 3. TRANSACTIONS WITH AFFILIATES INVESTMENT ADVISORY AND ADMINISTRATION AGREEMENTS -- The funds have investment advisory and administration agreements with Charles Schwab Investment Management, Inc. (the "investment adviser"). For advisory services and facilities furnished, each fund pays an annual fee, payable monthly, of 0.38% on the first $1 billion of average daily net assets, 0.35% on such net assets in excess of $1 billion to $10 billion, 0.32% on such net assets in excess of $10 billion to $20 billion, and 0.30% on such net assets in excess of $20 billion. The investment adviser has reduced a portion of its fee for the year ended December 31, 2000 (see Note 4). 114 TRANSFER AGENCY AND SHAREHOLDER SERVICE AGREEMENTS -- The trust has transfer agency and shareholder service agreements with Charles Schwab & Co., Inc. ("Schwab"). For transfer agency services provided, Schwab receives an annual fee, payable monthly, of 0.25% of average daily net assets of the Sweep Shares and 0.05% for Value Advantage Shares. For shareholder services provided, Schwab receives 0.20% of each fund's average daily net assets. Schwab has reduced a portion of its fee for the year ended December 31, 2000 (see Note 4). OFFICERS AND TRUSTEES -- Certain officers and trustees of the trust are also officers and/or directors of the investment adviser and/or Schwab. During the year ended December 31, 2000, the trust made no direct payments to its officers or trustees who are "interested persons" within the meaning of the 1940 Act. The funds incurred fees totaling $140 related to the trust's unaffiliated trustees. INTERFUND TRANSACTIONS -- During the year ended December 31, 2000, the funds engaged in purchase and sale transactions with funds that have a common investment adviser, common trustees, and common officers. These transactions, made at current market value pursuant to Rule 17a-7 under the 1940 Act totaled the following dollar amounts as seen below. Schwab Municipal Money Fund $4,810,604 Schwab California Municipal Money Fund 816,190 Schwab New York Municipal Money Fund 444,225 Schwab New Jersey Municipal Money Fund 624,034 Schwab Pennsylvania Municipal Money Fund 505,285 Schwab Florida Municipal Money Fund 2,609,320 4. EXPENSES REDUCED BY THE INVESTMENT ADVISER AND SCHWAB The investment adviser and Schwab guarantee that, through at least April 30, 2001, the funds total operating expenses of each class of shares will not exceed certain percentages of average daily net assets of that class of shares, after reductions, as shown below. For purposes of this guarantee, operating expenses do not include interest expenses, taxes, and certain non-routine expenses. The actual operating expense ratio for the year ended December 31, 2000 did include non-routine expenses. Sweep Value Advantage Shares (%) Shares (%) ---------- --------------- Schwab Municipal Money Fund 0.66 0.45 Schwab California Municipal Money Fund 0.65 0.45 Schwab New York Municipal Money Fund 0.69 0.45 Schwab New Jersey Municipal Money Fund 0.65 -- Schwab Pennsylvania Municipal Money Fund 0.65 -- Schwab Florida Municipal Money Fund 0.59 -- 115 NOTES TO FINANCIAL STATEMENTS (continued) For the year ended December 31, 2000, the total of such fees reduced by the investment adviser and Schwab was as follows: Fees Reduced by the Fees Reduced by investment adviser Schwab ------------------- --------------- Schwab Municipal Money Fund $14,994 $257 Schwab California Municipal Money Fund 9,824 -- Schwab New York Municipal Money Fund 1,900 138 Schwab New Jersey Municipal Money Fund 696 -- Schwab Pennsylvania Municipal Money Fund 522 -- Schwab Florida Municipal Money Fund 2,216 -- 5. CAPITAL SHARE TRANSACTIONS Transactions in capital shares, for the years ended December 31, 2000 and December 31, 1999 (at $1.00 per share), were as follows:
Schwab Schwab California Schwab New York Municipal Money Fund Municipal Money Fund Municipal Money Fund --------------------------- ----------------------------- --------------------------- 2000 1999 2000 1999 2000 1999 ------------ ------------ ------------ ------------ ----------- ----------- Proceeds from shares sold: Sweep Shares $ 29,861,664 $ 25,547,075 $ 17,669,847 $ 13,072,679 $ 3,321,113 $ 2,312,453 Value Advantage Shares 4,684,428 3,660,571 2,995,788 1,972,125 555,726 372,608 ------------ ------------ ------------ ------------ ----------- ----------- Total 34,546,092 29,207,646 20,665,635 15,044,804 3,876,839 2,685,061 ------------ ------------ ------------ ------------ ----------- ----------- Net asset value of shares issued in reinvestment of dividends: Sweep Shares 212,617 162,369 110,869 76,680 22,830 14,494 Value Advantage Shares 88,189 58,606 55,159 39,991 11,614 7,751 ------------ ------------ ------------ ------------ ----------- ----------- Total 300,806 220,975 166,028 116,671 34,444 22,245 ------------ ------------ ------------ ------------ ----------- ----------- Payments for shares redeemed: Sweep Shares (29,383,923) (24,865,127) (17,314,654) (12,302,903) (3,150,196) (2,190,547) Value Advantage Shares (4,124,460) (3,068,642) (2,483,685) (1,767,460) (444,187) (322,679) ------------ ------------ ------------ ------------ ----------- ----------- Total (33,508,383) (27,933,769) (19,798,339) (14,070,363) (3,594,383) (2,513,226) ------------ ------------ ------------ ------------ ----------- ----------- Increase in net assets from capital share transactions $ 1,338,515 $ 1,494,852 $ 1,033,324 $ 1,091,112 $ 316,900 $ 194,080 ============ ============ ============ ============ =========== ===========
116 REPORT OF INDEPENDENT ACCOUNTANTS To the Board of Trustees and Shareholders of: Schwab Municipal Money Fund, Schwab California Municipal Money Fund, Schwab New York Municipal Money Fund, Schwab New Jersey Municipal Money Fund, Schwab Pennsylvania Municipal Money Fund, and Schwab Florida Municipal Money Fund In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Schwab Municipal Money Fund, Schwab California Municipal Money Fund, Schwab New York Municipal Money Fund, Schwab New Jersey Municipal Money Fund, Schwab Pennsylvania Municipal Money Fund and Schwab Florida Municipal Money Fund (six of the portfolios constituting The Charles Schwab Family of Funds, hereafter referred to as the "Funds") at December 31, 2000, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Funds' management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2000 by correspondence with the custodian, provide a reasonable basis for our opinion. PricewaterhouseCoopers LLP San Francisco, California February 14, 2001 117 TAX DESIGNATIONS (Unaudited) Pursuant to Section 852(b)(5)(A) of the Internal Revenue Code, the Funds hereby designate 100% of the dividends paid for the year ended December 31, 2000 as exempt-interest dividends. 118 CONTACT SCHWAB The SchwabFunds Family(R) includes a variety of funds to help meet your investment needs. You can diversify your portfolio in a single step with our asset allocation funds. Or you can customize your portfolio with a combination of our stock funds as well as our taxable and tax-advantaged bond and money market funds. Please call 1-800-435-4000 for a free prospectus and brochure for any of these SchwabFunds.(R) This report must be preceded or accompanied by a current prospectus. METHODS FOR PLACING ORDERS The following information outlines how Schwab brokerage account investors can place orders. If you are investing through a third-party investment provider, methods for placing orders may be different. INTERNET* WWW.SCHWAB.COM SCHWAB BY PHONE(TM) Use our automated voice service or speak to a representative. Call 1-800-435-4000, day or night (for TDD service, call 1-800-345-2550). TELEBROKER(R) Automated touch-tone phone service at 1-800-272-4922 MAIL Write to SchwabFunds at: P. O. Box 7575 San Francisco, CA 94120-7575 When selling or exchanging shares, be sure to include the signatures of at least one of the persons whose name is on the account. * Shares of Sweep Investments(R) may not be purchased over the Internet. THE SCHWABFUNDS FAMILY EQUITY INDEX FUNDS Schwab S&P 500 Fund Schwab 1000 Fund(R) Schwab Small-Cap Index Fund(R) Schwab Total Stock Market Index Fund(TM) Schwab International Index Fund(R) QUANTITATIVE/SECTOR FUNDS Schwab Analytics Fund(R) Schwab Focus Funds Communications Focus Fund Financial Services Focus Fund Health Care Focus Fund Technology Focus Fund ASSET ALLOCATION FUNDS Schwab MarketTrack Portfolios(R) All Equity Portfolio Growth Portfolio Balanced Portfolio Conservative Portfolio Schwab MarketManager Portfolios(R) Growth Portfolio Balanced Portfolio Small Cap Portfolio International Portfolio BOND FUNDS Schwab Short-Term Bond Market Index Fund Schwab Total Bond Market Index Fund Schwab YieldPlus Fund(TM) Schwab Short/Intermediate Tax-Free Bond Fund Schwab Long-Term Tax-Free Bond Fund Schwab California Short/Intermediate Tax-Free Bond Fund Schwab California Long-Term Tax-Free Bond Fund SCHWAB MONEY FUNDS Schwab offers an array of money market funds that seek high current income consistent with safety and liquidity.1 Choose from taxable or tax-advantaged alternatives. Many can be linked to your Schwab account to "sweep" cash balances automatically when you're between investments. Or, for your larger cash reserves, choose one of our Value Advantage Investments.(R) 1 Investments in money market funds are neither insured nor guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency and, although they seek to preserve the value of your investment at $1 per share, it is possible to lose money. [GRAPHIC OMITTED] SCHWABFUNDS INVESTMENT ADVISER Charles Schwab Investment Management, Inc. 101 Montgomery Street, San Francisco, CA 94104 DISTRIBUTOR Charles Schwab & Co., Inc. P.O. Box 7575, San Francisco, CA 94120-7575 This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus. (C) 2001 Charles Schwab & Co., Inc. All rights reserved. Member SIPC/NYSE. Printed on recycled paper. MKT3859-3(2/01) -----END PRIVACY-ENHANCED MESSAGE-----